Jan 17 2026

Japan’s largest automobile labour union group announced it will not scale back wage demands heading into 2026 talks, even as rising U.S. tariffs have reduced automaker profits. The union emphasised that higher wages are essential to sustain domestic demand and support the broader economy.

Industry leaders are cautiously watching the negotiations, as wage growth could influence consumer purchasing power — particularly for vehicles — while auto firms grapple with tariff headwinds and global competition. The outcome of these talks could also inform the Bank of Japan’s interest rate decisions.