Toyota Initiates Reverse Imports of US-Built Camry, Highlander, and Tundra Models to Japan

Toyota Motor Corporation, the Japanese automotive giant, formally announced on Friday, December 19, 2025, its intention to begin shipping three specific models assembled in the United States back to the Japanese domestic market, commencing in 2026. This strategic maneuver, termed 'reverse import,' will encompass the Camry sedan, the Highlander SUV, and the full-size Tundra pickup truck. These vehicles are manufactured in Kentucky, Indiana, and Texas, respectively. Toyota stated that the objective behind this action is to diversify its product lineup to better meet evolving customer demands while simultaneously fostering the improvement of bilateral trade relations between the United States and Japan.

This significant decision arrives amidst ongoing trade discussions and rhetoric, particularly concerning the administration of U.S. President Donald Trump and his economic agenda, which has featured the imposition of import tariffs. Back in July 2025, Washington and Tokyo finalized a framework agreement. Reports indicate this accord stipulated a reduction in American tariffs on Japanese automotive products down to a 15% level. This concession was reportedly secured in exchange for a commitment from Japan to invest $550 billion into the U.S. economy. Furthermore, as part of this broader transaction, Japan agreed to eliminate certain regulatory hurdles, specifically dropping the requirement for supplementary safety testing on imported American vehicles, thereby effectively adopting U.S. standards for these imports.

Historically, American-made vehicles have captured only a marginal share of the Japanese market. This limited penetration has often been attributed to their typically larger physical dimensions and the prevalence of left-hand drive configurations. From January through June 2025, sales of American brands accounted for a mere 7.8% of total vehicle imports, translating to 9,517 units sold. For comparison, Mercedes-Benz moved 25,015 vehicles during the same period. Nevertheless, overall demand for American brands experienced a notable uptick, growing by 17.2% compared to the preceding year, a trend analysts suggest is being driven by the introduction of newer, electrified models.

Industry analysts largely interpret Toyota’s latest move as a calculated strategic gesture aimed at easing current trade tensions, rather than a decision primarily based on anticipated sales volume projections. Toyota Chairman Akio Toyoda previously signaled a willingness to engage constructively with Washington, notably by attending an event in November 2025 wearing MAGA headwear. Concurrently, the corporation reaffirmed its commitment to invest $10 billion in American manufacturing over the next five years and recently inaugurated a new battery plant in North Carolina. Toyota President Koji Sato had previously confirmed that the company was actively exploring the feasibility of introducing U.S.-market models into Japan.

The economic viability of this 'reverse import' strategy might face scrutiny due to the prevailing weak yen, which tends to inflate the cost of American-sourced vehicles within the Japanese domestic market. Despite this potential headwind, the action underscores the company's readiness to make compromises within the context of larger economic maneuvers. These maneuvers also include Japan’s pledge to increase its procurement of American rice by 75%. Following the formalization of the tariff reduction decree, shares of Toyota Motor Corp. saw a positive reaction, climbing by 3.5%.