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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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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.

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Kyodo News+ broke the news in Japan on Wednesday, August 6, 2025.
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