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25 Apr, 2025
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Letter from Nikkei Asia's editor: Small cars, big stakes: Trump airs frustration with Japan automakers
@Source: nikkei.com
Hello from Tokyo. As all of you probably know, America is a heavily motorized society. I've lived there twice -- once in Iowa and once in California -- and experienced firsthand how the interstate highways stretch endlessly like airport runways, while vast parking lots surround shopping malls. Driving in Tokyo after witnessing all that space is intimidating. You must navigate the narrow, maze-like Metropolitan Expressway and squeeze your car precisely into tight, mechanized parking lots. U.S. President Donald Trump is intensifying his criticism of the Japanese auto industry, claiming that "nontariff barriers," such as safety standards, are why American cars don't sell well in Japan. Early this month, he complained that "94% of the cars in Japan are made in Japan. Toyota sells 1 million foreign-made automobiles into the United States. ... None of our companies are allowed to go into other countries." Personally, I love American cars. When I lived in Silicon Valley, I briefly considered buying an American pickup truck but decided against it, given my daily visits to environmentally conscious news sources in the tech industry. Even now, I find the Jeep Grand Cherokee and Cadillac Escalade SUVs, both available in Japan, appealing, but unfortunately they won't fit in the parking space at my Tokyo apartment. In contrast to the Trump administration's continued complaints about Japan's automotive market, Chinese electric vehicle maker BYD is leveraging its in-house-manufactured batteries to break into Japan's market for kei minicars. Kei cars are a unique category in Japan, defined by specific regulations: They must be no longer than 3.4 meters, no wider than 1.48 meters and no taller than 2 meters. U.S. and European automakers have also called kei standards a nontariff barrier, but BYD is aggressively entering this highly popular small-size auto segment in Japan. While global automakers face significant risks from Trump's tariffs, BYD -- which doesn't rely on the U.S. market -- remains unaffected. The Chinese automaker appears to be capitalizing on the turmoil to drive its growth. BYD has outsold U.S. EV rival Tesla globally for two straight quarters, and this week it unveiled its latest models at an auto show in China. Nikkei Asia places a strong focus on automotive-related news, and I invite you to visit our website to explore the latest coverage. My suggested reads 1. For years, Western countries have been attempting to build up supply chains of rare-earth elements and the high-performance magnets they are used in. But China's latest curbs on rare-earth exports -- part of Beijing's retaliation against U.S. President Donald Trump's "reciprocal" tariffs -- reveal just how little progress such efforts have made. 2. As wealthy domestic and Asian investors ride Japan's real estate bull run, young salaried workers are being shut out of the market. Shoebox condominiums -- once a traditional source of retirement income for younger investors -- have become unattainable as property values climb and Japan's return to a "world with rates" drives up mortgage costs. 3. Numerous people, young and old, are joining Indonesia's fitness craze. Gyms and yoga and Pilates classes are filling up, while marathons are drawing increasingly large numbers of participants. Local and foreign businesses ranging from athleisure makers to fitness chain startups are cashing in, seeing enormous opportunities in a country where the fitness trend has just begun to boom. 4. Growing doubts about the U.S. Trump administration's commitment to defending allies has stoked debate in South Korea about whether it should pursue its own nuclear weapons program to secure defense against North Korea. Surveys show public support, but such a move would trigger a barrage of obstacles, from breaching the nonproliferation consensus to potential economic sanctions. 5. Japan's 1960s and '70s counterculture was a world that was at once grotesque, erotic and dangerous, yet also comical, exciting and unforgettable. A new documentary, "Japanese Avant-Garde Pioneers," shines a spotlight on the characters who inhabited this "Through the Looking-Glass" realm and their lasting legacy. Through the lens This week's top photo pick: A woman looks at a portrait of Pope Francis at St. Louis Catholic Church in Bangkok following a Mass held in his honor on April 22. Pope Francis died the day before after suffering a stroke and cardiac arrest, the Vatican said. (Photo by Suzu Takahashi) Check out more of our photo coverage here. Wishing you a wonderful weekend! Akito Tanaka Sign up for the weekly Editor-in-chief's picks newsletter here. Thank you for reading this newsletter. We are taking a short break and will be back in your inboxes on Friday, May 9.
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