Reduced US tariffs are a relief for Japanese automakers in the UK
The reduced 15% US tariffs are a relief for Japanese automakers operating in the UK, say leading audit, tax and business advisory firm, Blick Rothenberg.
Yusuke Takanishi, a partner at the firm, said: “The 15% tariff agreed between Japan and the US, down from the threatened 25% will be a welcome relief for Japanese automakers in the UK. It will help them maintain tax efficiency and supply chain continuity.”
He added: “The reduced tariff enables more flexible and compliant transfer pricing across Japan–UK–US operations. Under a 25% rate, companies would have faced difficult decisions in adjusting intercompany pricing while managing transfer pricing risk. The 15% level lowers this exposure and supports consistent tax alignment across jurisdictions.”
Yusuke said: “Thanks to this lower tariff, supply chain stability can be preserved. Japanese automakers in the UK rely on highly integrated production as well as import and export routes. A higher tariff might have prompted a reassessment of the UK’s role in global operations. With a more manageable rate, firms are better positioned to maintain their UK footprint and avoid costly restructuring.”
He added: “This agreement will support business continuity, tax certainty, and long-term planning for Japan’s automotive sector in the UK.”