Japan’s Carmakers Absorbing Tariffs May Bolster Trump Position

Japanese carmakers have largely absorbed the cost of US President Donald Trump’s tariffs on auto imports, a move that may undermine the Asian nation’s negotiating power ahead of a July 9 deadline that will see duties rocket even higher.

So far, just three of Japan’s six major automakers have raised prices in the US, and only Subaru Corp.’s hike has come close to the 25% tariff imposed on imported vehicles.

Toyota Motor Corp., the world’s No. 1 carmaker, only lifted prices on some models by a few hundred dollars while Mitsubishi Motors Corp.increased prices by an ...