The current PHP system allows imported cars to be exempted from safety and environmental reviews. However, American car brands such as Chevrolet and Cadillac sold less than 1,000 vehicles in Japan in 2024, so the actual benefits are limited. The Japanese side believes that this institutional concession has political symbolic significance and can hedge against potential tariff threats from the Trump administration.

Analysts point out that this measure reflects Japan's trade - off strategy between the core interests of its auto industry and the trade pressure exerted by the US. Japan is trying to balance its economic interests in the auto sector while dealing with the US's strong - arm tactics in trade negotiations.