Japanese cars like the Nissan Skyline GT-R could cost more in the United States – but that could be good news for Australian and New Zealand buyers.
Potential tariffs on Japanese Domestic Market cars could see the US market for them dry up, meaning more will head to Australia and New Zealand – making them more affordable – according to one US automotive commentator.
Writing in US publication Car and Driver, Canadian-based journalist Brendan McAleer suggested the threat of tariffs from the United States (US) Trump Administration on Japanese products may also include Japanese Domestic Market (JDM) cars popular with enthusiasts globally.
“If the US market for JDM cars dries up, many of them will instead end up in Australia and New Zealand, both of which are already a paradise for JDM cars,” McAleer said.
The Trump administration is proposing a 25 per cent tariff on all vehicles imported from Japan into the US from as soon as 2 April 2025.
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Japanese Domestic Market (JDM) cars are vehicles sold in Japan when new – many models not sold elsewhere – and are hugely popular in the aftermarket and tuning scene.
Australia and the US have similar ‘grey’ import laws allowing JDM cars to be imported and legally road-registered once they are 25 years old, with an estimated 15,000 vehicles a year landing here.
These are not shipped to Australia by car makers but by private specialist importers under the Specialist and Enthusiast Vehicles (SEVs) scheme.
Notable JDM vehicles include the R33 and R34 Nissan Skyline GT-R, Nissan S13 Silvia and 180SX, various Mitsubishi Lancer Evolutions, Subaru Impreza WRXs and Lexus SC400/Toyota Soarers.
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Some of these vehicles are highly collectible with values well into six figures, with an Australian buyer paying $1.5 million for a rare version of an R33 Skyline GT-R in 2023.
Grey imports also include many practical vehicles such as JDM versions of the Toyota HiAce passenger and commercial van, the Nissan Elgrand luxury people mover as well as smaller ‘Kei’ cars like the pint-sized Honda Beat convertible sports car.
McAleer suggests in Car and Driver that pending tariffs in Japan could add to the existing 2.5 per cent tariffs on JDM cars sent to the US – citing warehouses full of R34 Nissan GT-Rs awaiting their 25th birthday (the R34 was produced between 1999 and 2002).
Japanese tariffs could also push the price of Japanese Kei trucks – the tiny commercial vehicles – in the US, where they are already hit with a 25 per cent tariff known as the ‘chicken tax’.
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While a small market in the US, the tariffs could see models originally destined for North America increase in price – lowering demand – softening the appetite for JDM vehicles.
That may be good news for Australia and New Zealand, as it means more supply may be diverted giving fans of JDM cars in both countries potentially more choice and lower prices.
Earlier this month, President Trump gave US automakers a 30-day reprieve on tariffs for vehicles and parts imported from Mexico and Canada, with the supply chain across the three countries significantly intertwined.
The tariffs are currently planned to be enforced from April 2, 2025 – the same date the 25 per cent tariff on Japan is set to commence.
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