Kanda, a small town encircled by mountains on Japan’s southeast coast, is currently focused on the implications of President Trump's recently declared 25 percent tariffs on car imports to the United States. The local economy heavily relies on a Nissan Motor factory, which employs over 4,000 workers and produces hundreds of thousands of vehicles annually, with half of these exported to the U.S.
Residents express uncertainty regarding the tariffs' long-term effects, with local councilor Hironori Beppu stating that without Nissan, Kanda's financial situation would deteriorate significantly. The town, home to approximately 38,000 people, may serve as a model for similar export-oriented communities worldwide if the tariffs persist.
Following the tariff announcement on March 26, Nissan has been contemplating the relocation of some production of its Rogue model from Kanda to the United States. Such a move could lead to job losses in Kanda and potentially impact Japan's industrial landscape, with economists predicting that the tariffs could halve Japan's economic growth this year.
Nissan's Kanda facility spans over 500 acres and includes various amenities for its workforce. The factory has been operational since 1975 and has become a vital part of the local economy, contributing to Kanda's growth even as many rural areas in Japan face population decline.
Local officials, including Kazuyuki Taguchi, head of Kanda’s department of transportation and commerce, emphasize the town's reliance on Nissan and are keen to understand the tariffs' implications. Prime Minister Shigeru Ishiba announced plans to establish around 1,000 offices nationwide to assess the tariffs' impact on domestic industries.
Nissan's newly appointed CEO, Ivan Espinosa, noted the company's efforts to prepare for various tariff scenarios amid ongoing restructuring of its global operations. The company had already announced plans to reduce jobs and production capacity due to a significant drop in operating profit.
While Nissan intends to maintain its production levels in the U.S., experts suggest that car manufacturers are likely to adopt a cautious approach before making substantial changes in response to the tariffs. Takaki Nakanishi, head of an automotive consulting firm, indicated that companies would likely sell off existing inventory in the U.S. before making long-term decisions.
In Kanda, the local community remains anxious about the future. Residents, including Nissan workers, gather at local establishments to discuss the tariffs and their potential impact on their livelihoods. One employee expressed concerns but remained hopeful that Nissan would prioritize job security for its Japanese workforce.