Navigating the impact of U.S. tariffs on Japanese imports

Japanese businesses exporting to the United States are facing a new reality of rising trade barriers. The implementation of U.S. tariffs on Japanese imports in July 2025¹ initially created significant pressure, contributing to a challenging period for exporters. 

Recent data reflects this strain, with U.S.-bound shipments dipping 13.3% year-on-year through August 2025², marking a six-month consecutive drop. The automotive sector, a cornerstone of Japan's exports, was particularly affected, suffering a 24.2% decline³ during that period.

While subsequent trade negotiations have aimed to ease some pressures, the environment of geopolitical tariffs creates a persistent "profit squeeze." Exporters are often forced to choose between absorbing increased costs, thus reducing margins, or passing them on to customers, which risks lowering demand. Understanding how tariffs impact your business is the first step.

At a glance: impact of U.S. tariffs on Japanese imports & exports

The recent shifts in trade policy have altered the landscape for key Japanese export categories. While specific rates are subject to change and depend on precise product classification, it’s clear that the new tariff climate has produced cascading effects on Japanese exports. 

To see what the import tax from Japan to the USA is, the table below illustrates the general nature of recent tariff adjustments impacting goods entering the U.S. market:

Source: World Trade Organisation⁴, Global Trade Alert⁵

Important Disclaimer: The rates shown are illustrative examples only and intended to demonstrate potential cost structures. The actual U.S. tariff rate applied to any specific product depends entirely on its precise Harmonized Tariff Schedule (HTS) classification code. Japanese exporters must verify the correct HTS code and consult the official U.S. Customs and Border Protection (CBP) resources for definitive duty rates applicable to their goods.

The profit squeeze: how U.S. tariffs directly and indirectly impact your business

U.S. tariffs do more than just add a direct cost at the border; they create ripple effects that can disrupt global value chains. Understanding both the immediate and secondary consequences is key to developing an effective tariff mitigation strategy.

Direct effects of U.S. tariffs on Japanese exporters include:

• Increased costs: The most immediate impact is the added duty payable upon importation into the U.S. These new tariffs directly increase the landed cost of Japanese imports, eroding profit margins unless the cost can be successfully passed on to the American buyer.
• Reduced or shifting demand: Higher prices resulting from tariffs can make Japanese cars and other goods less competitive, potentially leading to decreased demand. It's important to assess the elasticity of demand for your products—how sensitive your customers are to price increases—when deciding how much of the tariff cost to pass on.
• Risk of customs delays: Changes in tariff structures add complexity to the customs clearance process. Shipments may face increased scrutiny, documentation requirements, or processing times, which could lead to delays and negatively impact customer satisfaction with your international shipping.

Beyond these direct impacts, U.S. tariffs can also create less obvious, indirect pressures on Japanese suppliers.

• Supply chain disruption: Japanese companies supplying intermediate goods (e.g., advanced components) to manufacturers in third countries, like China, might see demand for their products fall if those third-country manufacturers face their own U.S. tariffs on finished goods.
• Increased competitive pressure: Shifting trade policies can alter the competitive landscape. Suppliers from regions not subject to the same U.S. tariffs may gain an advantage, putting pressure on Japanese businesses to find ways to maintain competitive pricing.
• Altered competitive positioning: Shifting trade policies inevitably change the competitive landscape. Suppliers from regions unaffected by the same U.S. tariffs may gain a cost advantage. Analyzing your relative competitive position in light of these changes is critical for maintaining market share and competitive pricing.

Tariff mitigation strategies to adapt for your business

Facing the impact of U.S. tariffs, Japanese businesses need proactive, multi-pronged strategies for mitigating tariffs. Waiting to react is no longer sufficient; a forward-thinking approach is required to protect your business and maintain global competitiveness.

1. Re-evaluate your supply chain & logistics

The current tariff landscape may discourage over-reliance on Western markets, making diversification towards Eastern and Southern partners an attractive alternative. Opportunities abound in the growing economies closer to Japan.

One widely discussed strategy is adopting a China Plus One strategy. This approach involves diversifying production or supplier bases beyond solely relying on China by adding capacity in at least one other country, often within Southeast Asia (ASEAN). Doing so reduces vulnerability to tariffs targeting a single country and builds resilience against regional disruptions.

However, simply shifting between the U.S. and China can still leave Japanese brands susceptible to supply risks driven by geopolitical tariffs. Consider exploring "friend-shoring"— re-aligning parts of your supply chain with trading partners that have stable relationships and potentially preferential trade agreements with the U.S. or other key markets.

2. Optimize pricing and internal operations

Supply chain adjustments often take time. In the immediate term, review your pricing strategy. Decide whether your business can absorb some of the new tariff costs or if they must be passed on to customers. If passing costs on, transparent communication is key to maintaining customer relationships while aiming for competitive pricing. Consider developing new pricing tiers or models.

Strengthening internal processes is another crucial tariff mitigation strategy. Ensure your teams are using accurate Harmonized System (HS) codes for all products and optimize your documentation workflow. Errors here can lead to compliance issues, customs clearance delays, and additional costs beyond the tariffs themselves when shipping from Japan.

3. Explore new markets and trade agreements

While new tariffs create challenges, they can also indirectly create opportunities by encouraging businesses to explore untapped markets. Diversification is a core tariff mitigation strategy.

Japanese businesses can strategically expand into new, less tariff-sensitive markets to diversify their export portfolio. Regions like ASEAN, India, or parts of Latin America offer significant growth potential for Japanese imports like auto parts and machinery, often with rapidly growing consumer bases.

Several trade agreements and factors can facilitate smoother entry into these alternative markets:

• Regional Comprehensive Economic Partnership (RCEP): Connects Japan with ASEAN nations, China, South Korea, Australia, and New Zealand, offering potential preferential tariff rates and streamlined customs procedures within the bloc.
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): Links Japan with several Pacific Rim countries (including ASEAN members like Vietnam and Malaysia), providing reduced tariffs and standardized trade rules.
• Japan-ASEAN Comprehensive Economic Partnership (AJCEP): Offers specific benefits for trade between Japan and ASEAN member states.
• Bilateral Agreements: Japan also holds bilateral Economic Partnership Agreements (EPAs) with individual countries like India, Thailand, and Indonesia, which may offer specific advantages for certain goods.

Note: Accessing benefits under these agreements requires meeting specific Rules of Origin criteria for your products.

Partnering for resilience: how DHL Express can help

Navigating the complexities of U.S. tariffs and shifting global trade routes doesn't have to be tackled alone. Partnering with a logistics provider like DHL Express, which combines a strong global presence with deep local expertise in Japan and the U.S., provides a significant competitive advantage.

Expert customs guidance

DHL Express employs licensed customs brokers and specialists in both Japan and the U.S. who possess deep knowledge of international trade regulations. These teams offer practical support to help businesses navigate the complexities created by U.S. tariffs.

The expert guidance provided by DHL Express includes:

• Tariff classification support: Assistance in determining the correct Harmonized System (HS) codes for products, which is fundamental for accurate duty calculation.
• Understanding specific U.S. tariffs: Clarification on how new U.S. tariffs apply to particular goods, including potential exemptions or specific rulings.
• Documentation review: Guidance on the necessary documentation for customs clearance in the U.S., helping ensure accuracy and completeness to avoid issues.
• Advice on rules of origin: Support in understanding and documenting product origin, which is important for compliance and potentially accessing preferential duty rates under trade agreements.
• Updates on regulatory changes: Proactive information regarding changes in U.S. customs regulations or tariff implementations that could impact Japanese imports.

Leveraging this in-house expertise helps ensure shipments remain compliant, effectively preventing costly customs clearance delays and potential fines associated with navigating the U.S. tariff environment.

Technology for compliance & efficiency

DHL Express also offers advanced digital tools designed to support tariff mitigation strategies and improve overall shipping efficiency for Japanese businesses. Leveraging these technologies helps streamline processes and maintain compliance amidst complex tariff regulations.

Key digital tools available include:

• My Global Trade Services (MyGTS): This comprehensive online platform assists businesses in correctly classifying goods with HS codes, estimating potential tariff rates and taxes for shipments to the U.S., and checking eligibility for Free Trade Agreements which might offer duty relief.
• Paperless Trade (PLT): This service allows businesses to transmit customs documentation electronically alongside their shipment data. PLT streamlines the customs clearance process, reduces reliance on physical paperwork, minimizes the risk of lost documents, and saves valuable time.
• MyDHL+ Platform: The primary online shipping portal from DHL Express provides end-to-end visibility. Businesses can manage shipments, track progress in real-time, and receive proactive notifications about potential clearance issues, enabling faster response times and greater operational control.

Turn tariff challenges into opportunities

The current landscape of U.S. tariffs presents challenges, but also opportunities. By proactively adopting tariff mitigation strategies like supply chain diversification and operational optimization, Japanese businesses can build long-term resilience and find new avenues for growth.

Focusing on supply chain agility, internal efficiency, and leveraging the right partnerships allows Japanese exporters to navigate the new trade environment effectively. These steps enable businesses to thrive despite the pressures of geopolitical tariffs.

Don't let tariffs hold your business back. Open a DHL Express business account to learn how our global network, expert customs clearance support, and comprehensive international shipping services can help you navigate the complexities of international shipping and secure your competitive advantage when shipping from Japan.

Frequently asked questions about tariffs and exporting