President Donald Trump announced plans to lower tariffs on Japanese auto imports from 25% to 15%, yet these tariffs significantly affect Japan's auto industry. Toyota projects a 1.4 trillion yen ($9.5 billion) reduction in operating income for the 2026 fiscal year due to these tariffs, exacerbated by exchange rate fluctuations and increased expenses. Honda also reported a 50% decline in operating profits, attributing a loss of 122 billion yen to tariffs, although it adjusted its profit forecast upwards. The US-Japan trade deal provides some relief to Japanese automakers against higher tariffs imposed on American manufacturers.
Toyota's forecast for the 2026 fiscal year has been lowered due to US tariffs, predicting a drop in operating income by 1.4 trillion yen.
Honda reported a 50% fall in year-over-year operating profits, attributing it to US tariffs as they lost around 122 billion yen in profits.
The recent US-Japan trade deal reduced the tariff on Japanese auto imports to 15%, offering relief to manufacturers like Toyota and Honda.
Despite a positive adjustment in its full-year profit forecast, Honda warned of a potential total tariff impact reaching 450 billion yen for the year.
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