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Trump’s gripe over automobile ‘bowling-ball check’ dents Japan’s commerce hopes

by Index Investing News
April 27, 2025
in Economy
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Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.

Japanese commerce negotiators making an attempt to spare their nation from Donald Trump’s tariffs are making ready to do battle over a problem the place neither facet can simply again down: a automobile security check that doesn’t exist.

Trump has perplexed officers in Tokyo with a reference to a Japanese “bowling-ball” check — dropping a bowling ball on to a automobile and failing any automobile if its bonnet dents underneath the affect.

The US president first referred to the check in 2018. “They take a bowling ball from 20 toes up within the air and so they drop it on the hood of the automobile. And if the hood dents, then the automobile doesn’t qualify,” he stated. “It’s horrible, the best way we’re handled.”

On Sunday he once more cited the check on his Reality Social platform for instance of “protecting technical requirements”.

Japan doesn’t perform such assessments on its vehicles, though one carried out within the nation and elsewhere does entail hitting a automobile with a rounded object at a velocity of 35kph, to simulate an affect with a pedestrian. Within the check, a dent within the bonnet usually signifies good shock absorption and a doubtlessly much less lethal affect.

It’s a part of a UN-formulated security regime that carefully resembles Europe’s and places new automobile fashions via assessments on 43 objects. The US has its personal proprietary automobile security testing regime that diverges from UN requirements.

Japan has heaps at stake within the commerce negotiations with the US, which Tokyo’s chief negotiator, Ryosei Akazawa, will resume in Washington subsequent week. Trump has threatened its export-oriented financial system with 24 per cent “reciprocal tariffs” on high of levies on vehicles and metals, and has beforehand prompt that vehicles will probably be excessive on the agenda.

“94 per cent of the vehicles in Japan are made in Japan. Toyota sells a million international made vehicles into the US and Basic Motors sells nearly none,” stated Trump on the day that reciprocal tariffs had been introduced in early April.

US complaints about imbalances with Japan in automobile exports usually are not new. “There are various Japanese vehicles in America. I wish to see extra American vehicles in Japan, as nicely,” Barack Obama stated on a go to to Japan as president in 2015.

Some US manufacturers corresponding to Jeep and Tesla have made inroads in Japan however 2024 fiscal yr gross sales of as much as 17,207 models for US manufacturers had been a small fraction of the 4.57mn passenger vehicles offered in Japan, in keeping with official knowledge.

Some US carmakers admit that has little to do with non-tariff boundaries.

“There are little quirks however they’re remnants of a paperwork of a system that has been altering slowly. Are they non tariff boundaries? Sure, they’re because it takes extra money and time to conform,” stated Pontus Häggström, who led Fiat Chrysler in Japan for greater than a decade and is now regional director of Alpine, Renault’s sports activities automobile model. 

“Is that this the explanation why US vehicles usually are not promoting in Japan? The reply is totally not.”

One senior promoting govt in Tokyo, who labored on advertising US automobile manufacturers in Tokyo through the Nineteen Nineties and early 2000s, stated promoting American vehicles to Japan was a problem as a result of they’re “too huge, eat an excessive amount of fuel, and lack the little design particulars that the shopper right here appears to be like for”.

Whereas Japan stays in quest of compromises that may enchantment to Trump, any compromise on security requirements may not be accepted by prime minister Shigeru Ishiba, who’s making an attempt to shore up his recognition and has repeatedly referred to Trump’s tariffs as having precipitated a “nationwide disaster”. 

“Be it vehicles or agricultural merchandise, we won’t do something that may have an effect on security,” he instructed a parliamentary session this week.

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However Japan may need floor to cede on different non-tariff boundaries for imported autos, together with subsidies that favour native producers corresponding to Toyota and Japan’s distinctive fast-charging requirements for electrical autos, in keeping with auto executives.

“If Japan desires to supply one thing, then they’ll do it on the EV entrance as there are some boundaries there,” stated Ludwig Kanzler, chief govt of Hanegi Options, a consulting agency that has suggested South Korea’s Hyundai on market entry to Japan.



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