Why are Japanese products so pricey?

When I went to Japan, everything they have on sale are so expensive (more expensive than the one in the USA). The only exception is their car. Honda, Toyota, Nissan.

Japan is an island nation. They don't produce much on their own, and much of what their local shops have to sell is imported from other countries.

First of all, it depends on foreign exchange rate. Exactly when did you visit Japan?
Second, it depends on where you shopped. I guess you missed 100-yen shop, in which you can get many merchandize used in daily life with JPY100 plus tax. JPY100 is smaller sum than US$1 at October 17, 2014.

So buy a Honda Toyota or Nissan.