Japanese trading company Toyota Tsusho has begun offering direct shipping services from Japan to Canada and Mexico for Japanese auto parts suppliers, helping small and medium-sized enterprises (SMEs) bypass the double tariffs associated with transshipment through the United States and directly access North American auto manufacturing centers. The company stated that, using Nagoya, Japan as the originating port, this new logistics model can reduce shipping costs to Canada by 24% and to Mexico by 61%. Due to lower labor costs in Canada and Mexico, automakers commonly produce vehicles for the US market in these two countries. According to Toyota Tsusho, Toyota produces approximately 2 million vehicles annually in North America, with about 40% manufactured in Canada and Mexico. However, many small and medium-sized Japanese auto parts companies do not have operations in Canada or Mexico, and therefore typically need to export their products to the United States first, before transshipping them to local customers.
