Japan in March 2026: the most important developments in economy
Japan's economy in March 2026 was dominated by news from its carmakers. On 12 March Honda said it was canceling production of three planned electric vehicles in the United States, citing tariffs and competition from Chinese automakers, with a one-time charge of up to $15.7 billion that is expected to give it its first annual net loss since it went public in the 1950s. On 25 March Sony and Honda ended their joint venture to develop the Afeela electric vehicle. Nissan cut production by 1,200 vehicles at its Kyushu plant because of shipping delays to the Middle East. Toyota raised its buyout offer for Toyota Industries, winning the support of Elliott Management for a deal worth roughly $38 billion,. Denso made a bid of up to $8 billion for chipmaker Rohm.
The closure of the Strait of Hormuz put pressure on energy and industry. Prime Minister Takaichi announced on 11 March that Japan would release oil from its reserves; the release began on 16 March, the largest in Japan's history, and a second batch followed on 26 March. Japan pledged 80 million barrels to a 400-million-barrel global release. Gasoline reached a record 190.80 yen per liter, and the government restarted subsidies. The Kashiwazaki-Kariwa reactor resumed generating power on 22 March, and Japan marked 15 years since the Fukushima disaster.
Financial markets fell. The yen weakened from 159 to the dollar and passed 160 on 30 March for the first time, prompting warnings from finance officials that Japan is ready to take 'decisive' steps. The Nikkei fell about 2,000 points on 23 March and reached its lowest level of 2026 on 30 March. The Bank of Japan kept rates unchanged on 18 March, citing inflation risks.
On 20 March the United States and Japan announced a $40 billion nuclear power project and three other projects worth $73 billion. Rengo unions secured an average wage rise of over 5% for the third year running, and Berkshire Hathaway agreed to invest $1.8 billion in Tokio Marine.
by WorldBrief & Maksim Micheliov | AI-generated summary
Click a day in the chart above for that day's brief.