Net Profit of Seven Japanese Automakers Drops 27%... Direct Hit from U.S. Tariffs

Net Profit for April-September: 2.092 Trillion Yen
Nissan, Mazda, and Mitsubishi Motors Turn to Losses
U.S. Tariffs and Weak Yen Lead to Across-the-Board Downturn

The combined net profit of seven Japanese automobile companies fell by 27.2% year-on-year for the period from April to September, due to the impact of U.S. tariff measures and other factors.

A Toyota dealership of the Japanese automobile company located in Algonquin, Illinois, USA. Photo by Yonhap News

According to Kyodo News and the Nihon Keizai Shimbun on November 10, the combined net profit of seven companies-Toyota Motor, Honda, Nissan, Suzuki, Subaru, Mazda, and Mitsubishi Motors-for the April to September period was 2.092 trillion yen (approximately 19.7 trillion won), down 782.7 billion yen (about 7.4 trillion won) from the same period last year. Nissan, Mazda, and Mitsubishi Motors all reported losses.

The Nihon Keizai Shimbun reported, "This is the first time in five years, since 2020 during the COVID-19 pandemic, that all seven companies saw a deterioration in net profit and loss." The newspaper also noted, "The negative impact of U.S. tariff measures amounted to 1.5 trillion yen in terms of operating profit, and exchange rate fluctuations also had a negative effect of about 700 billion yen."

The Donald Trump administration in the United States raised tariffs on Japanese automobiles from 2.5% to 27.5% in April, before lowering them to 15% as of September 16.

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