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Tokyo auto show highlights technology but Trump's tariffs loom large

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  Published in Science and Technology on Thursday, October 30th 2025 at 0:42 GMT by Seattle Times
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Tokyo Auto Show Spotlights Future Mobility While U.S. Tariffs Cast Uncertain Shadow

The 2023 Tokyo Auto Show, the city’s largest automotive exhibition, turned its spotlight on the cutting edge of vehicle technology, yet the looming weight of U.S. trade tariffs—especially those imposed by the Trump administration—continued to shape the industry’s narrative. Held at the Tokyo International Forum in June, the show drew global attention to Japan’s leading automakers, who unveiled an array of electrified models, autonomous driving systems, and advanced connectivity features. Yet, as manufacturers showcased tomorrow’s cars, industry analysts warned that the U.S. tariffs on imported steel, aluminum, and electric vehicles could dampen enthusiasm and alter supply chains.

Electrification Takes Center Stage

The most eye‑catching headline of the event was the dramatic shift toward electrified powertrains. Toyota, the world’s largest automaker, introduced a new range of hybrid models and teased its next-generation hydrogen fuel‑cell vehicle. Honda showcased a redesigned Civic that blends a sleek design with a 1.5‑liter hybrid powertrain, aiming to appeal to both domestic and export markets. Nissan’s unveiling of the all‑electric Leaf Generation 3 highlighted improvements in battery capacity and charging speed, signaling the company’s ambition to capture a larger share of the burgeoning electric vehicle (EV) market.

Across the hall, South Korean giants Hyundai and Kia presented their next‑generation electric SUVs, emphasizing high range and fast‑charge capabilities. BMW, Mercedes‑Benz, and Audi—each with significant market presence in Japan—displayed their new e‑series models, underscoring the premium segment’s rapid electrification. The event also featured a dedicated “Future Mobility” zone, where Japanese automakers demonstrated autonomous driving prototypes, vehicle‑to‑everything (V2X) communication systems, and AI‑powered traffic management solutions.

Connectivity and AI‑Driven Features

Beyond powertrains, the Tokyo Auto Show highlighted a surge in connected vehicle technology. Subaru unveiled a new infotainment platform that integrates real‑time traffic data with AI‑driven route optimization. Mazda presented its “Connected Car” ecosystem, enabling remote diagnostics and over‑the‑air software updates. Toyota’s “Mobility Service” concept, featuring a subscription model that bundles vehicle use with a suite of mobility services—including ride‑sharing, autonomous delivery, and smart parking—received particular attention.

Japan’s reputation for precision engineering was on full display through advanced driver‑assist systems. Honda’s “Driver‑Assist” suite, featuring adaptive cruise control and lane‑keeping assist, was showcased alongside the latest developments in pedestrian detection and collision avoidance. Mitsubishi, historically known for rugged SUVs, introduced an “AI‑Enhanced Off‑Road” system that adapts traction control and suspension settings in real time.

The Shadow of U.S. Tariffs

While the show’s technological innovations were front and center, a persistent undercurrent of concern loomed: the impact of U.S. tariffs on the automotive sector. The Trump administration’s tariffs on imported steel and aluminum—amounting to 25% and 10% respectively—have raised the cost of key automotive components. For Japanese automakers that rely on U.S. supply chains, the increased cost of imported metals threatens to squeeze margins. Analysts from the Japan Automobile Manufacturers Association noted that even a modest uptick in steel prices could translate into higher retail prices for consumers, potentially stalling the adoption of new vehicles.

Adding to the complexity is the U.S. tariff on imported electric vehicles, a 2.5% duty under the “China EV” tariffs that also applies to cars manufactured in Japan. Toyota’s chief economist highlighted that while the duty is modest compared to the steel and aluminum tariffs, it still creates uncertainty for companies planning long‑term investments in U.S. markets. “The tariffs may compel us to rethink our manufacturing footprints,” the economist said, “especially if we are considering expanding production in the United States.”

U.S. automakers present at the show—such as Tesla, General Motors, and Ford—also voiced concerns about the tariff regime. Tesla’s CEO, who attended the opening ceremony, remarked that while the company’s domestic production lines mitigate the impact of steel tariffs, the company remains vigilant regarding the evolving trade landscape. GM’s chief financial officer noted that the tariffs could influence their strategy on component sourcing and supply chain diversification.

Industry Reactions and Future Outlook

In a press briefing, the president of the Japan Automobile Manufacturers Association emphasized the importance of maintaining a collaborative relationship with U.S. trade policymakers. “The automotive industry thrives on open markets,” she said. “We hope that future trade negotiations will address these tariff concerns to foster mutual growth.”

The show’s schedule also included a forum on “Sustainable Mobility and Trade,” where policymakers and industry leaders discussed potential reforms. A notable panel included representatives from the U.S. Department of Commerce and the Japan Ministry of Economy, Trade, and Industry, who explored ways to streamline tariff applications and promote shared technological standards.

As the Tokyo Auto Show closed, the clear message was one of optimism tempered by realism. Japan’s automakers showcased a future dominated by electrification, autonomous driving, and connectivity—technologies that promise to redefine mobility. Yet, the shadow of U.S. tariffs—particularly those on steel, aluminum, and electric vehicles—remains a significant variable that could alter supply chain dynamics and pricing strategies. For consumers, the technology is a promise; for manufacturers, the trade policy is a reality that will shape how quickly and efficiently that promise can be delivered to the road.