Sunday, April 20, 2025

Another car brand bans all exports to the US

Mitsubishi has a huge inventory of cars in the US. But when it's empty, prices are expected to rise. The Japanese have stopped all exports to the US.

Japanese carmaker Mitsubishi is pausing all shipments to the US due to Trump's tariffs. Discounts on existing cars are being cut, even though dealers have enough cars in stock for at least 100 days.

Mitsubishi has now stopped delivering cars to the US in response to Trump's 25 percent tariff on imported cars. The Japanese brand fears the consequences for, among other things, the Outlander model.

All Mitsubishi cars sold in the US are built in Japan, making the brand particularly vulnerable to the new import tariffs.

A Mitsubishi spokesperson has commented on the situation to Automotive News .

– We are holding cars back at the port until we have more clarity on the customs rates.

However, the spokesperson adds that there is sufficient stock at retailers right now, so customers' choices are not immediately affected.

According to Autonews, dealers have 20,245 cars in stock in the US. That's enough inventory to cover sales for almost 100 days.

Trump tariffs hit several car brands

Mitsubishi is not alone in reacting to Trump's tariffs. Several other foreign automakers have also paused shipments to the US.

The list includes brands such as Lotus and Jaguar-Land Rover. Volkswagen and Audi are also holding back ships and car transport from the ports.

Volvo even went a step further recently. They have completely stopped sales of the S90 model in the US due to the situation.

Prices of cars already at dealerships will not be directly affected by the tariffs, but Mitsubishi is preparing for inevitable price increases later.

The brand has cut subsidies for its best-selling car, the Outlander. Customers now only receive a cash subsidy of approximately 7,000 Danish kroner, compared to approximately 10,500 kroner previously.

Uncertain future for Mitsubishi in the US

At the same time, financing costs for qualified buyers have increased. The interest rate has been raised from 2.99 percent to 4.99 percent.

The new tariff situation comes at a difficult time for Mitsubishi, which has already struggled in the US market.

In 2024, Mitsubishi sold only 109,843 cars in the US. That's a relatively low number for the large market. Here in Denmark, it was – without comparison otherwise – 198 cars. Or just 0.1 percent of the market.

Back in the US, it is reported that several dealers have already lost faith in the brand. Many are instead focusing more on selling used cars.

The automakers have not yet announced when they expect to resume shipments, awaiting more clarity on the tariffs from the Trump administration.

It is likely that they are hoping that the tariffs will be dropped or at least reduced. But that possibility seems less and less likely with each passing day.

Everything points to an uncertain future for imported cars in the US. It could mean higher car prices and falling sales figures in the American market.

Although the situation in the US is uncertain, Mitsubishi has a long history of popular cars, also in Denmark. You can read more about how Mitsubishi panicked and sold its entire collection of rare cars because an importer thought everything was over right here .

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