Japan Considers Easing Import Car Reviews in Bid for Tariff Exemption as US-Japan Tariff Tussle Escalates

On April 29, it was learned that the Japanese government is planning to expand the "Special Treatment System for Imported Automobiles (PHP)". The annual exemption quota for each vehicle model will be increased from 5,000 units. This move is aimed at defusing the US accusation of "non - tariff barriers" against Japan. It is intended to provide bargaining chips for the second round of US - Japan trade negotiations that will kick off on the 30th.

The current PHP system allows imported cars to be exempted from safety and environmental reviews. However, American car brands such as Chevrolet and Cadillac sold less than 1,000 vehicles in Japan in 2024, so the actual benefits are limited. The Japanese side believes that this institutional concession has political symbolic significance and can hedge against potential tariff threats from the Trump administration.

Analysts point out that this measure reflects Japan's trade - off strategy between the core interests of its auto industry and the trade pressure exerted by the US. Japan is trying to balance its economic interests in the auto sector while dealing with the US's strong - arm tactics in trade negotiations.