Zero Tariffs vs. 25% Duties: Classic Car Exemptions in US-Japan Trade

In 2025, the global automotive trade faces unprecedented challenges due to aggressive tariff policies. While modern vehicles endure a 25% import duty in the U.S. and retaliatory tariffs in Japan, classic cars have emerged as a rare bright spot. The 25-year exemption rule in the U.S. and Japan’s zero-tariff policy on imported vehicles have created a thriving niche market for vintage automobiles, with savvy collectors and dealers capitalizing on these exemptions to bypass punitive trade barriers. This article explores how classic cars are reshaping US-Japan auto trade, offering actionable strategies for enthusiasts and investors.

The Exemption Advantage: How 25-Year-Old Vehicles Avoid Tariffs

US 25-Year Rule

The U.S. grants a critical exemption for vehicles over 25 years old:

• 2.5% import duty (vs. 25% for modern cars)

• No EPA/DOT compliance required

• Simplified customs clearance with minimal documentation

Example Savings: A 1999 Nissan Skyline GT-R R34 valued at $85,000 pays $2,125 in duty (2.5%) instead of $21,250 (25%).

Japan’s Zero-Tariff Policy

Japan maintains a 0% tariff on all imported vehicles, including classics. Key benefits:

• No emissions or safety compliance for pre-1990 models

• Growing demand for American muscle cars and European classics

• Nostalgic reimportation of JDM vehicles that spent decades abroad

Market Trends: Classic Car Surge Amid Tariff Tensions

37% Increase in US Classic Imports

Since the April 2025 tariff implementation, the U.S. has seen a 37% year-over-year surge in classic car imports, driven by:

• 1999–2000 Models: Newly eligible under the 25-year rule (e.g., Honda S2000, Toyota Celica)

• JDM Demand: Japanese classics now account for 61% of all U.S. vintage imports

• Investment Potential: Auction prices for eligible models rose 15-40% in 2025

Japan’s Nostalgic Reimportation Boom

Japanese collectors are repatriating classic JDM vehicles originally exported to the U.S.:

• 1990s Icons: Toyota Supra, Nissan 300ZX, and Mitsubishi Lancer Evolution

• Cultural Value: Vehicles featured in Initial D and Fast & Furious command premium prices

• Logistics Advantage: US-sourced classics often have detailed service records and lower mileage

Bidirectional Opportunities: US-Japan Classic Trade

Exporting American Classics to Japan

Japan’s zero-tariff policy and weak yen make U.S. classics highly attractive:

• Muscle Cars: 1960s Mustangs and Camaros up 22% in Japanese auction value

• Pre-1980 Luxury: Cadillac Eldorado and Lincoln Continental demand grows 18% YoY

• Off-Roaders: 1970s Jeep CJ-5s and Ford Broncos surge 35% due to overlanding trends

Importing JDM Legends to the US

The 25-year exemption unlocks iconic Japanese models for American collectors:

• Nissan Skyline GT-R R34: Only 11,578 produced; U.S. prices exceed $120k

• Toyota Supra (A80): Unmodified examples fetch 20% premiums over modified ones

• Honda NSX NA1: Low-mileage examples now trade at $150k+

Check our Article on the best JDM legends to impor to the US 

Case Studies: Successful Tariff-Avoidant Trade

1. The R34 Renaissance

A California dealer imported six 1999 Skyline GT-R R34s from Japan in Q1 2025:

• Cost: $85,000/unit (Japan) + $2,125 duty

• Resale: $120,000/unit (U.S. auction)

• Profit Margin: 34% after shipping and compliance

2. American Muscle in Osaka

A Tokyo collector imported a 1967 Chevrolet Camaro SS from Texas:

• US Cost: $75,000

• Japan Value: ¥14M ($127k)

• Key Factor: Original 396ci V8 and matching-numbers documentation

3. Temporary Import Strategy

A Porsche dealer used a Temporary Import Bond (TIB) to display a 2000 911 GT3 Clubsport at Monterey Car Week, avoiding $73,750 in duties before re-exporting to Germany.

Strategic Approaches for Collectors & Dealers

1. Focus on Newly Eligible Models

Prioritize vehicles crossing the 25-year threshold in 2025:

• 2000 Honda S2000: AP1 chassis with F20C engine

• 1999 Mitsubishi Lancer Evo VI: “Tommi Mäkinen Edition”

• 2000 Toyota MR2 Spyder: Lightweight roadster gaining cult status

2. Leverage USMCA for Parts Sourcing

Source components from Mexico/Canada to avoid tariffs:

• Engine Rebuilds: USMCA-compliant machine shops save 18-22%

• Body Panels: Mexican suppliers replicate JDM parts at 30% lower cost

3. Dual-Market Arbitrage

• Export/Reimport: Buy U.S.-stored JDM cars for Japanese collectors

• Currency Plays: Time purchases during JPY/USD fluctuations

How West Coast Shipping Facilitates Classic Trade

Our services streamline cross-Pacific classic car logistics:

• Age Verification: Confirm eligibility via factory records and VIN decoding

• Customs Expertise: File HS-7/EPA forms for seamless clearance

• Secure Transport: Enclosed containers from Yokohama to Long Beach

For broader context, see our article:
Japan's Zero-Tariff Policy: Impact on US Car Exports

The Classic Car Lifeline

In an era of escalating trade tensions, classic vehicles have become a rare conduit for tariff-free auto trade between the U.S. and Japan. By focusing on 25+ year-old models and leveraging bidirectional exemptions, collectors can acquire appreciating assets while bypassing punitive duties.

Ready to navigate the classic car exemption?

Contact us for tailored strategies to maximize your US-Japan automotive investments.