Japan’s auto success fuels US trade alarm

The global automotive industry is on the verge of a historic transition, as Japanese auto giant Toyota, now reaping a massive payoff from its prescient mid-1990s bet on hybrid technology, is set to become the world’s No 1 auto maker in terms of vehicles produced, probably by the end of the year.

As a consequence of such statements, there is growing alarm among Japanese policymakers and auto executives that protectionist pressure could mount over US trade with both China and Japan, which together account for nearly 40% of the overall US trade deficit. This alarm has been fueled by a continued sharp rise in Japanese auto exports to the US so far this year.

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