Japan's firms conservative on profit forecasts amid US tariff impact
Some major Japanese companies are expecting a fall in their net profits for fiscal 2025 amid uncertainties caused by US tariff policies under the Trump Administration.
Mitsubishi Corporation says it projects a 26.4 percent decline in its net profit for the business year through March 2026, compared to the figure the previous year.
Mitsui & Co. also says it expects a 14.5 percent drop in its net profit for the year.
The two Japanese leading trading companies said one reason is a projected drop in profitability stemming from a fall in resource prices.
Since the United States imposed additional tariffs in April, concern over a global economic slowdown has led to a slump in crude oil prices.
There are views that an economic slowdown in China due to the country's trade conflicts with the US may drive down prices of natural resources, such as iron ore and coal.
Mitsubishi Corporation President and CEO Nakanishi Katsuya said his company would keep on monitoring macroeconomic factors for effects caused by further intensification of trade friction between the US and China.
Shipping company Mitsui O.S.K. Lines said it sees net profit plunging 60 percent in fiscal 2025, as the risk of slowdown of global flows of goods linked to the US tariff measures becomes more apparent.
The company cited a decrease in container transport of goods from China to the US, and lower car carrier shipments.
The Japanese marine shipping company plans to set up an office in Washington in June to gather information on the Trump administration's policies.
The company also plans to revise vessel operation in accordance with changes in demand.
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