Toyota begins selling US-made models in Tokyo under tariff deal

Toyota Motor said Thursday it has begun selling two US-made vehicle models in Tokyo under a simplified import procedure introduced through a tariff agreement between Japan and the United States.

The company said the Tundra pickup truck, manufactured in Texas, and the Highlander sport utility vehicle, produced in Indiana, went on sale in the Japanese capital on Thursday, with nationwide sales set to begin this summer.

Under the Japan-US tariff deal, vehicles manufactured in the United States and certified there as safe can be sold in Japan without undergoing additional safety testing.

After the nationwide rollout, Toyota plans to sell 80 Tundras per month at a suggested retail price of 12 million yen ($75,000) and 40 Highlanders per month at $53,900.

The automaker also aims to begin sales of the US-produced Camry sedan once preparations are completed.

The move follows an agreement between Washington and Tokyo on auto trade as part of broader tariff negotiations.

US President Donald Trump had imposed steep tariffs on trading partners, including Japan, in a bid to reduce chronic US trade deficits.

In April last year, the Trump administration raised tariffs on foreign-made cars to 27.5% from 2.5%. The tariff rate on Japanese vehicles was later reduced to 15% in July and formally took effect in September.

Auto exports accounted for about 30% of Japan's total exports to the United States in 2023, the largest share among all sectors.