Japan firms' FY2025 net profit to fall on U.S. tariffs; 1st drop in 6 years

Japan Today

2 days ago

Total net profit for major Japanese companies listed on the Tokyo Stock Exchange is expected to fall 7.8 percent in the current business year, the first drop in six years, as higher tariffs imposed by U.S. President Donald Trump weigh on manufacturers, a tally by a securities firm showed Monday.
The net profit in the companies' earnings estimate for the year ending in March totaled 44.94 trillion yen ($305 billion), according to SMBC Nikko Securities Inc. Companies in the transportation equipment sector are expecting to be hit especially hard by the levies, with their net profit projected to tumble 33.6 percent from the previous year to 5.01 trillion yen.
SMBC Nikko used earnings reports released as of Friday by 1,143 companies, or 99.7 percent of those listed on the top-tier Prime Market whose fiscal year ends in March. But it barred 46 firms that did not disclose a forecast for its analysis.
Among the firms, combined net profit for the April-June period fell 11.7 percent to 12.74 trillion yen.
Japan and the United States last month agreed on auto and so-called reciprocal tariffs of 15 percent.
Trump said on Friday that he will set a new tariff rate for steel and semiconductors in the upcoming weeks.
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