Japanese automotive giant Toyota recently announced a surprising plan to export U.S.-made Camry, Highlander, and Tundra models to Japan. This move has sparked curiosity among industry observers.
Toyota cites two primary reasons for this decision. First, the company aims to cater to the increasingly diverse preferences of its global customer base. Second, this initiative is part of a broader effort to strengthen Japan-U.S. trade relations.
Toyota is actively pursuing a new certification system under review by Japan’s Ministry of Land, Infrastructure, Transport, and Tourism. This system is designed to reduce barriers for U.S.-manufactured vehicles entering the Japanese market.
Additionally, this strategic move is a diplomatic gesture aimed at encouraging the U.S. government to further reduce or eliminate tariffs on Japanese automobiles and auto parts. The latest U.S.-Japan trade and investment agreement, formalized in September 2025, lowered tariffs from 25% to 15%.
The 15% cap was negotiated in exchange for Japan’s commitment to a $550 billion investment fund for U.S. infrastructure, semiconductor, and energy projects. Japan also agreed to increase its rice imports from the U.S. by 75%, along with an annual $8 billion expenditure on other agricultural products.
Among the models, the Highlander and Tundra stand out as particularly noteworthy. As of November 2025, Japan’s best-selling vehicles are kei cars, urban compact cars, and B-segment models. Larger vehicles face challenges in Japan due to taxes based on engine displacement and weight.
Vehicles like the Camry, classified under the “3-number” license plate system, incur higher insurance costs and parking restrictions. In contrast, many Japanese cities exempt smaller passenger vehicles from the stringent proof-of-parking requirements.
Despite historically low fuel prices in both Japan and the U.S., Japanese drivers pay approximately $4 per gallon, compared to under $3 per gallon in the U.S. Even with the i-Force MAX hybrid system, the Tundra remains fuel-intensive, achieving up to 22 mpg (10.7 L/100 km) in combined testing.
The Highlander and Camry, both featuring monocoque chassis and efficient powertrains, offer significantly better fuel economy. The 2026 Highlander achieves up to 36 mpg (6.5 L/100 km), while the lighter, aerodynamically optimized Camry boasts an impressive 51 mpg (4.6 L/100 km).
Toyota Motor North America has not yet specified whether the conversion to right-hand drive will occur in the U.S. or Japan. Pricing details remain undisclosed. At the time of writing, the Camry starts at $29,000, the Highlander at $45,270, and the Tundra at $41,260, excluding destination fees and options.
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