It’s been almost three months since the U.S. imposed the new “Trump tariffs” on imported cars, and the effects are starting to show in Hiroshima, where Mazda is based.
Mazda, whose main market is North America, is feeling the impact. Of the 424,000 cars it sold in the U.S. in 2024, about 80% were exported — mostly from Japan and Mexico. In April, Mazda’s domestic production dropped 12.6% compared to last year, and the tariffs added an estimated cost of 9 to 10 billion yen (around $60–65 million) just for that month.
Workers are worried. Overtime is being cut, activities are limited, and temp workers are the first to go. Local businesses around Mazda’s hometown are also seeing fewer customers. Taxi drivers report fewer passengers, and local restaurants say company events like welcome parties have declined.
Mazda’s exports from Hiroshima Port fell by 29% in April, and container shipments through nearby terminals also dropped by about 10%.
Mazda is central to Hiroshima’s economy. One resident said, “If Mazda sneezes, the whole city catches a cold.” There are about 2,000 companies in Hiroshima connected to Mazda’s supply chain, doing business worth over 1.2 trillion yen. A 10% production drop could seriously hurt small and medium-sized businesses.
Suppliers are trying to adapt. For example:
- Toyo Seat, which relies on Mazda for over 80% of its sales, is developing new business in its U.S. plants and trying to cut costs.
- Ogino Industry, which makes engine and transmission parts, says Mazda-related production is down. But they’re using automation and in-house built machines to stay efficient and flexible.
Mazda told suppliers it aims to keep domestic production around 700,000 units. Experts warn that if the supply chain breaks down, the regional economy could suffer deeply. Support from the national government may also be needed to help companies weather the crisis.
by MagazineKey4532