What will happen to the price of imported cars to US consumers if the US eliminates its tariffs while Japan maintains theirs?

When the US eliminates tariffs on imported cars from countries like Japan, it effectively lowers the cost of those vehicles for American consumers. Without tariffs, the price of imported cars will tend to decline, making them more affordable.

As for the demand for US exports, if Japan maintains its tariffs, American-made cars will remain more expensive for Japanese consumers, which could lead to a decrease in demand for US export products in Japan and potentially elsewhere where US cars compete with foreign manufacturers.

However, the key element at play is the interaction between the removal of tariffs on imported cars and consumer purchasing behavior. Lower prices for imported cars in the US can also shift demand patterns, as consumers may prefer to buy the now cheaper foreign options over domestic products. Thus, while the price of imported cars declines, the effect on US exports and demand may show a decline due to less competitive pricing domestically compared to the lower prices of imported vehicles.