Toyota launches to sell ‘made in USA’ cars in Japan

Welcome to the Matrix of global trade, where the Japanese motor king, Toyota, will market models manufactured in the United States in its homeland. In a milestone that the market interprets as a nod to the White House, the manufacturer plans to send up to three ‘made in USA’ models to Japan: The sedan Camrythe sport utility vehicle Highlander and the pick up Tundra -made in Kentucky, Indiana and Texas- will go on sale in the Japanese market starting in 2026.

“Toyota will be able to meet the diverse needs of a wide range of customers, while contributing to improved trade relations between Japan and the United States,” the company said in a statement. As the country’s largest automaker is strengthening its approach to try to get Trump to ease the high tariffs he imposed on Japanese cars and related parts sent to the US. In November, Toyota President Akio Toyoda donned a red MAGA hat and wore a T-shirt with the faces of Trump and Vice President JD Vance while hosting a NASCAR promotional event in Japan.

Toyoda first suggested to then-Prime Minister Shigeru Ishiba in May that American automakers could sell passenger cars in Japan using Toyota’s domestic sales network. The US-Japan trade deal would end up including a demand that Japan “open its country” to cars imported from the United States. Other Japanese manufacturers likely to follow Toyota’s leadBut even if they do, the market for these types of vehicles will likely be “extremely limited,” said Tatsuo Yoshida, senior automotive analyst at Bloomberg Intelligence.

“All three models under discussion are large by Japanese standards, and left-hand drive remains a major psychological and practical barrier for most consumers (…) Producing right-hand drive versions in the United States for the Japanese market could free up some demand, but vehicle size limitations would still limit volumes,” he said.

More recently, Trump said thate is paving the way for lightweight Asian ‘Kei’ cars to be made and sold in the United Statesdespite concerns that they are too small and slow to drive safely on American roads. Large vehicles are not the best sellers in Japan, as roads and parking spaces are notoriously tight in the country, which partly explains why cars tend to be smaller there than in the United States. A Toyota official said in October that the company is working with the government to discuss how safety regulations could be relaxed to facilitate imports. Public broadcaster NHK reported Friday that the government is moving forward with those plans.