Car TalkIndustry knowledgeNew Tariffs Are Giving JDM Fans a New Heart Attack

New Tariffs Are Giving JDM Fans a New Heart Attack

On March 26, President Donald Trump announced 25% tariffs on all imported cars to the United States, set to take effect on April 3. This new car tariff upended the global automotive industry, especially for JDM enthusiasts, because it threatened to make the JDM dream a costly and elusive reality.

So what is the truth about this tax, and does it affect the passion to have a JDM car? JDM fans, let’s find out:

New Car Tariffs: A Blow to the JDM Heart 

In 2024, Japan was the second-biggest car exporter to the US, just behind Mexico, with a total of $40.76 billion worth of car imports, making up 18.6% of the total. Known for their high-quality and innovative vehicles, JDM cars have a strong presence in the US market. 

From legendary models (Toyota Supra or Nissan Skyline GT-R) to fuel-efficient compact cars, Japan offers diverse options for American consumers. JDM vehicles become more than just cars; they’re cultural icons, symbols of a passionate community built around a shared love for all things JDM.

But on March 26, 2025, a bombshell announcement sent shockwaves through the JDM community. President Trump declared new import taxes of 25% on cars and car parts coming into the US.

Trump said the latest tariffs would come into effect on 2 April, with charges on businesses importing vehicles starting the next day. Taxes on parts are set to start in May or later. The president said the measure would lead to “tremendous growth” for the industry, promising it would spur jobs and investment in the US. 

us tariff on japanese cars
President Trump declared new import taxes of 25% on cars coming into the US (Photo: istockphoto)

Following the initial announcement on March 26, President Trump provided the full details of the automotive tariffs on April 3rd. This included a comprehensive list of Harmonized Tariff Schedule (HTS) subheadings subject to the 25% tariff. The tariffs apply to a wide range of imported vehicles, including sedans, sport utility vehicles, crossover vehicles, minivans, and cargo vans, as well as light trucks.

Notably, the tariffs extend beyond complete vehicles to encompass over 150 categories of auto parts. This includes essential components like engines, transmissions, powertrains, lithium-ion batteries, and commonly imported parts such as tires, shock absorbers, and brake hoses.

As soon as the news about tariffs was announced, it made a stir in the JDM community, and many people called it heartbreaking. With these tariffs, it means prices for JDM models are skyrocketing, pushing them out of reach for many enthusiasts. 

According to the PBS News, “Some car buyers have been rushing to showrooms across the country this weekend, as automakers brace for Trump’s 25 percent tariffs on vehicles and auto parts made outside the United States. The tariffs kick in on Thursday and could raise some car prices by thousands of dollars.”

Do the new tariffs crush your JDM dreams? Don’t despair, there’s still a silver lining for JDM enthusiasts. So what’s really behind this measure?

Cars Over 25 years Exempt From 25% Import Tariff

current tariffs in the united states
The exemption states that vehicles are least 25 years ago are exempt from the 25% tariff increase (Photo: istockphoto)

The well-known ’25-year import rule’ in the United States has long been a key consideration for vintage and classic vehicle aficionados. In essence, vehicles that are at least 25 years old are exempt from certain U.S safety and emissions standards. 

With the new Trump tariff, had vintage cars been subject to the 25% tax, prices would have skyrocketed. 

So these new tariffs on imported cars have raised concerns, but there’s a crucial detail for those importing certain JDM vehicles – Harmonized System code 9903.94.04 provides a significant exemption from these tariffs, which can help JDM fans breathe a sigh of relief.

The exemption states that vehicles ( all passenger vehicles and light trucks) manufactured at least 25 years before the year of importation are exempt from the 25% tariff increase. This exemption is outlined in HS codes 9903.94.02, 9903.94.03, and 9903.94.04. The best part? It carries a 0% additional ad valorem rate of duty, so the existing 2.5% tariff remains unchanged.

The news is a win-win for both collectors and the industry. It allows enthusiasts to pursue their passion without the added financial strain of new tariffs. This opens doors for expanding collections, making smart investments, and satisfying the passion of owning a JDM car.

Although the tax exemption is great news, it’s crucial to check thoroughly with the authorities in the States where you’re living, and if you’re planning to import a Japanese car to the United States, it’s necessary to make clear the import process, including: 

  • Verifying vehicle’s age: Make sure that your car meets the 25-year age rule
  • Prepare necessary documentation: You’ll need certain documents to make sure your Japanese import clears customs in the US (such as original invoice, original export certificate, or Bill of Lading…)
  • Customs clearance: Understanding and complying with all customs regulations.

Final Thoughts

To wrap up this article, we want to make clear that while newer vehicles might face increased tariffs, your JDM cars, provided they meet the 25-year age requirement, are exempt from these additional charges! We hope that this information will help JDM fans feel a bit relieved.

Tsukasa Azuma
Tsukasa Azuma
Tsukasa Azuma is the resident car expert at Car From Japan. He owns a car repair shop in downtown Osaka, and his years of hands-on experience shine through in his informative blog posts. Tsukasa provides top-notch car maintenance tips and keeps readers up-to-date on the latest trends in the auto industry, offering a unique and insightful perspective on everything car-related. His blog has become a go-to resource for anyone wanting to keep their car in top shape.
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