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.

Business sentiment among large Japanese manufacturers has improved slightly, according to a survey by Japan’s central bank, despite persisting worries over President Donald Trump’s tariffs

US President Donald Trump has warned Japan he could impose tariffs of up to 35% if a new trade agreement is not reached before the expiration of a 90-day duty pause on 9 July 2025. The comments mark a significant escalation in trade tensions with Japan,