American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Honda Q1 operating profit halves, hit by Trump tariffs and strong Yen

by admin August 6, 2025
August 6, 2025
Honda Q1 operating profit halves, hit by Trump tariffs and strong Yen

Japanese automaker Honda Motor reported a steep decline in first-quarter operating profit on Wednesday, as the impact of new US auto tariffs and a stronger yen weighed on performance.

Operating income fell by about 50% year over year to ¥244.17 billion, significantly below the ¥323.48 billion average estimate compiled by LSEG.

The sharp drop in profitability occurred despite a modest revenue beat, which rose to ¥5.34 trillion in the quarter ending June 30, compared to analyst estimates of ¥5.25 trillion.

Tariff impact less severe than feared

While US tariffs have clearly dented Honda’s earnings, the company said the full-year impact would be lower than previously anticipated.

Honda now estimates the tariff-related hit to be around ¥450 billion for the fiscal year ending March 31, 2026, down from an earlier forecast of ¥650 billion.

The reduced estimate comes amid shifting trade dynamics following US President Donald Trump’s 25% tariffs on imported vehicles, which took effect on April 3.

Last month, Trump announced a new trade agreement with Japan, which is expected to lower the rate to 15%, although no implementation date has been confirmed.

In response, Honda has raised its full-year operating profit guidance by ¥200 billion, or 40%, to ¥700 billion.

The upward revision was attributed to expectations that the yen will weaken further over the remainder of the year, offering some relief to exporters.

The US market is key

The United States accounted for roughly a quarter of Honda’s exports from Japan during the first half of 2025.

But even as Tokyo’s car export volumes to the US rose 4.6% year over year in June, the value of those exports fell 25.3%, according to data from Japan’s Ministry of Economy, Trade and Industry.

Overall global sales for Honda declined 5% during the quarter, reflecting softness in China, Asia, and Europe.

Auto exports to the US remain critical to Japan’s economy, making up 28.3% of the country’s total exports in 2024, based on Japanese customs data.

Honda is not alone in facing the brunt of global trade tensions and currency fluctuations.

On July 30, Nissan reported a first-quarter net loss of ¥115.8 billion, citing adverse exchange rate movements and the impact of US tariffs.

Toyota, which is scheduled to report earnings on Thursday, is expected to post its lowest operating profit in over two years, according to economists polled by Reuters.

This comes despite the company having achieved record global sales in the first half of the year.

Earlier this year, Honda and Nissan ended merger talks that could have led to the creation of the world’s third-largest automaker by sales volume.

The $60 billion deal was called off in February after months of discussions.

Tokyo pushes for tariff relief

As the industry reels from tariff-related headwinds, Japanese officials have stepped up diplomatic efforts.

Prime Minister Shigeru Ishiba said on Monday he would be willing to engage directly with President Trump to expedite the implementation of the reduced tariff rate.

Meanwhile, Japan’s chief trade negotiator Ryosei Akazawa departed for Washington on Tuesday to urge the US administration to formalise the lower tariff rate via executive order and confirm when it will take effect.

The post Honda Q1 operating profit halves, hit by Trump tariffs and strong Yen appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Glencore sticks with London listing, scraps NY plans as losses widen
next post
Europe markets open: Equities gain; focus on earnings, UK budget deficit concerns

Related Posts

IWM ETF: Here’s why the Russell 2000 has...

April 2, 2025

Oil prices drop, heading for weekly loss as...

May 23, 2025

Balancing a fixed income with inflation, a Georgia...

July 27, 2024

Zoom Video stock is in trouble, but a...

November 22, 2024

Why global investors should tread carefully amid China’s...

October 1, 2024

KKR secures majority stake in Fuji Soft after...

February 20, 2025

Hang Seng Index analysis ahead of China, US...

May 7, 2025

India overtakes China as top smartphone exporter to...

July 29, 2025

Jim Cramer says IonQ stock does not live...

May 29, 2025

Blackrock’s IBIT is a good Bitcoin ETF: Grayscale’s...

January 5, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,583)
    • Investing (2,703)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved