Japan auto lobby says US tariffs may lead to production adjustments among firms

TOKYO, March 19 (Reuters) - The chief of Japan's auto lobby warned that the potential April 2 start of auto tariffs proposed by U.S. President Donald Trump could force automakers and suppliers to make significant adjustments to their production schedules.

"For us, avoiding tariffs is a matter of course," Masanori Katayama, chairman of the Japan Automobile Manufacturers Association (JAMA) and truck maker Isuzu Motors 7202.T, told reporters during a press conference on Wednesday.

"But if that is difficult because of the timing, we would like to start discussing what the public and private sectors can do to deal with the situation as the next best thing, and are talking about that."

Japan's automobile association has been lobbying the Japanese government over the Trump tariff threat, asking the Japanese trade minister before his U.S. visit this month to push for an exemption from the looming duties.

In the event, Minister of Economy, Trade and Industry Yoji Muto failed to win any assurance from Washington that Japan would be exempt from any of the tariffs.

Trump has already raised duties on imports of steel and aluminium to 25%, effective last week, without exemptions or exceptions. The vehicle and auto part tariffs could take effect as soon as April 2.

The U.S. is the top market by vehicle sales for Toyota 7203.T, Honda 7267.T and Nissan 7201.T, which all make some of their most popular U.S. models in either Canada or Mexico. Smaller firms such as Subaru 7270.T and Mazda 7261.T are also at risk.

Katayama said that any adjustments manufacturers make to their production schedules as a result of U.S. tariffs were likely to differ among companies and products, without elaborating.

Katayama's remarks are the latest indication of the challenges Japanese automakers and suppliers face in adapting to the potential new U.S. tariffs.

In response, Honda has already decided to produce its next-generation Civic hybrid in the U.S. state of Indiana, instead of Mexico, to avoid potential tariffs on one of its top-selling models, people familiar with its plans told Reuters earlier this month.