Toyota is preparing to ship select vehicles built in the United States – including the Tundra pickup, Camry sedan, and Kluger SUV (Highlander in the US) – to Japan as early as 2026. This move comes after repeated calls from former US President Donald Trump for increased American automotive exports to Japan, and follows recent trade negotiations between the two countries.
US Production, Japanese Demand
The vehicles will originate from Toyota’s manufacturing facilities in Texas (Tundra) and Indiana (Camry, Kluger). Notably, the Tundra is currently produced exclusively in left-hand drive, yet Japan permits LHD vehicles on its roads, meaning no pre-export conversion is necessary. This simplifies logistics and avoids additional costs.
The decision to export from the US appears to be a direct response to pressure from the Trump administration, which previously imposed tariffs on Japanese vehicle imports and publicly demanded greater reciprocity in automotive trade. The automaker frames this as a way to “meet the diverse needs of a broad range of customers” while simultaneously improving Japan-US trade relations.
Impact on Australia
The announcement has no immediate implications for the Australian market. Toyota Australia will continue to source the Camry from Japan, and the locally sold Kluger will remain sourced from the US plant. The Tundra, which is currently converted to right-hand drive in Australia by Walkinshaw Automotive, will still be supplied through existing arrangements.
Broader Context
This shift reflects a broader trend of geopolitical maneuvering within the automotive industry. Trade disputes and protectionist policies have forced automakers to re-evaluate supply chains and distribution strategies. The Trump administration’s aggressive stance on trade, including tariffs and public pressure, demonstrably influenced Toyota’s decision.
The automaker’s recent $10 billion investment in its US operations, including a new battery plant in North Carolina, further indicates its commitment to strengthening its presence in the American market. This move is not simply about selling cars; it’s about navigating complex trade relations and securing long-term manufacturing stability.
Toyota’s decision is a clear example of how political pressure can directly shape corporate strategy, particularly in a globally interconnected industry like automotive manufacturing.
