US tariffs bite into Japanese carmakers' operating profits in April-June quarter

NHK

a day ago

Business results announced by six Japanese automakers for the April-June quarter show that US tariffs trimmed their operating profits by a combined 783 billion yen, or around 5.31 billion dollars.
The administration of US President Donald Trump started imposing a 25-percent additional tariff on vehicles from all countries and territories in April. That hiked the US duty on Japanese passenger cars to 27.5 percent.
The import levy shaved Toyota Motor's operating profit by some 3.05 billion dollars, Honda Motor's by roughly 846 million dollars, and Mazda Motor's by about 473 million dollars.
The operating profit of Nissan Motor was pared by around 466 million dollars, Subaru's by approximately 377 million dollars, and Mitsubishi Motors' by about 97.8 million dollars.
Meanwhile, some carmakers also disclosed to what extent a 15-percent US tariff on vehicles and auto parts is expected to affect their full-year operating profits for fiscal 2025, which ends in March next year.
Toyota predicts a contraction of about 9.51 billion dollars, while Honda estimates a shrinkage of roughly 3.05 billion dollars.
Japan and the US agreed on the 15-percent duty rate in their tariff negotiations. But it remains unclear when the US will implement that.
A growing number of officials in Japan's automobile industry are expressing concerns that the 15-percent tariff will generate significant burdens.
Analysts say automakers now have to tackle challenges, including whether to raise prices of their vehicles sold in the US, and how to cut production costs.