US EditionJapan carmakers focus on popular models to soften U.S. tariff impact
- Toyota and Honda announced significant net profit declines for fiscal 2024 due to new U.S. tariffs on Japanese auto exports that took full effect in April 2025.
- These tariffs followed initial duties on steel and aluminum starting in March and resulted from stalled U.S.-Japan trade negotiations.
- Automakers plan to emphasize sales of popular fuel-efficient models in the U.S., increase local production, and consider price adjustments to mitigate tariff impacts.
- Toyota anticipates its net profit will decline by 34.9%, reaching approximately 3.1 trillion yen , with expected operating profit losses of at least 180 billion yen early in fiscal 2025. Meanwhile, Honda is forecasting a net profit decrease of 70%, and Nissan is facing potential operating profit reductions of up to 450 billion yen.
- Despite profit hits from tariffs, analysts stress that the U.S. Market remains crucial for Japanese automakers, who will maintain competitiveness amid evolving trade challenges.
7 Articles
7 Articles
Japan carmakers focus on popular models to soften U.S. tariff impact
Japanese automakers have few immediate options to offset the impact of the additional U.S. tariff on cars. Toyota Motor Corp., Honda Motor Co. and other domestic manufacturers will likely rely on strong sales of their popular fuel-efficient models in the key market, potentially coupled with price increases, analysts say. An additional 25 percent tariff that took effect on April 3 is expected to significantly dent profits at Japanese automakers, …
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Japanese carmakers focus on popular models to soften U.S. tariff impact
Japanese automakers have few immediate options to offset the impact of the additional U.S. tariff on cars. Toyota Motor Corp, Honda Motor Co and other domestic manufacturers will likely rely on strong sales of their popular fuel-efficient models in the key market, potentially coupled with price increases, analysts say. An…
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