Honda Motor quarterly profit halves as U.S. auto tariffs bite
JAPAN, AUG 6 – Honda's U.S. market accounted for 41% of global sales in H1 2025 despite a 27.5% tariff reducing Q1 profit by 50%, but the company raised its full-year forecast.
- On August 6, 2025, Honda Motor announced that its operating profit for the April-June quarter declined by half to 244.2 billion yen .
- The decline stemmed from a stronger yen and steep 27.5% U.S. tariffs on auto imports imposed by Trump in April.
- Honda incurred a one-time charge of approximately 113 billion yen tied to electric vehicles and increasingly depends on the U.S. market, which accounted for 41% of its worldwide sales during the first six months of 2025.
- Tariffs lowered Honda's quarterly profits by approximately 125 billion yen; however, the company increased its prediction for annual operating profit, raising it from 500 billion yen to 700 billion yen.
- Honda now expects a smaller annual tariff impact of 450 billion yen versus 650 billion yen previously, aided by expected benefits from the USMCA trade agreement and a weaker yen averaging 140 per dollar.
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Honda forecasts drop in profits despite strong U.S. auto sales
Honda's profit in the last quarter was half of what it was a year earlier, the company said Wednesday, as automakers were hit by 25% tariffs on vehicle exports to the United States. The Japanese automaker reported Wednesday that its April-June profit totaled 196.7 billion yen, about half of what…
·Sakado, Japan
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Japan's Honda forecasts drop in profits despite strong US auto sales
Honda has reported its profit in the last quarter was half of what it was a year earlier, as automakers were hit by 25% tariffs on vehicle exports to the United States.
·United States
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Total News Sources35
Leaning Left4Leaning Right2Center11Last UpdatedBias Distribution65% Center
Bias Distribution
- 65% of the sources are Center
65% Center
L 24%
C 65%
12%
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