Japan could lose $17 billion in car export potential in the U.S. following President Donald Trump's decision to introduce 25% tariffs on the automotive sector, the International Trade Centre said on Friday.

A few carmakers have closed factories, laid off workers or shifted production in response to the auto tariffs that took effect last week.

Honda led Japanese automakers to make cars in the U.S. at a time when the sitting President targeted auto imports to rescue American auto manufacturing.

"Hang tough, it won't be easy," President Donald Trump said on Saturday of new tariffs, while pledging the "end result will be historic."

President Trump says the tariffs will encourage investment in U.S. factories, but analysts say car buyers will have to pay thousands more.

It's only been a few days since President Trump's 25% tariffs on foreign cars took effect. But the import surcharge has led to some immediate changes, including layoffs and pauses in car shipments.

Normally in demand items will soon be hard to find in America as companies hold off on shipping their goods here.

Japan's ruling coalition is considering a plan to deliver a cash handout as part of a package aimed at allaying the impact of US tariffs and continued inflation on the country's economy, local media reported on Thursday.

By imposing massive tariffs on foreign-made cars, Trump is punishing key allies, tanking Slovakia’s economy, and undermining U.S. influence in Eastern Europe.

Optimism in Tokyo’s markets suggests hopes are high for a breakthrough, despite Donald Trump’s rhetoric about Japan treating the US poorly.