{"id":42282,"date":"2025-08-06T11:36:21","date_gmt":"2025-08-06T11:36:21","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/06\/honda-q1-operating-profit-halves-hit-by-trump-tariffs-and-strong-yen\/"},"modified":"2025-08-06T11:36:21","modified_gmt":"2025-08-06T11:36:21","slug":"honda-q1-operating-profit-halves-hit-by-trump-tariffs-and-strong-yen","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/06\/honda-q1-operating-profit-halves-hit-by-trump-tariffs-and-strong-yen\/","title":{"rendered":"Honda Q1 operating profit halves, hit by Trump tariffs and strong Yen"},"content":{"rendered":"
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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. <\/p>\n

Operating income fell by about 50% year over year to \u00a5244.17 billion, significantly below the \u00a5323.48 billion average estimate compiled by LSEG.<\/p>\n

The sharp drop in profitability occurred despite a modest revenue beat, which rose to \u00a55.34 trillion in the quarter ending June 30, compared to analyst estimates of \u00a55.25 trillion.<\/p>\n

Tariff impact less severe than feared<\/h2>\n

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

Honda now estimates the tariff-related hit to be around \u00a5450 billion for the fiscal year ending March 31, 2026, down from an earlier forecast of \u00a5650 billion.<\/p>\n

The reduced estimate comes amid shifting trade dynamics following US President Donald Trump\u2019s 25% tariffs on imported vehicles, which took effect on April 3. <\/p>\n

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.<\/p>\n

In response, Honda has raised its full-year operating profit guidance by \u00a5200 billion, or 40%, to \u00a5700 billion. <\/p>\n

The upward revision was attributed to expectations that the yen will weaken further over the remainder of the year, offering some relief to exporters.<\/p>\n

The US market is key<\/h2>\n

The United States accounted for roughly a quarter of Honda\u2019s exports from Japan during the first half of 2025. <\/p>\n

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\u2019s Ministry of Economy, Trade and Industry.<\/p>\n

Overall global sales for Honda declined 5% during the quarter, reflecting softness in China, Asia, and Europe. <\/p>\n

Auto exports to the US remain critical to Japan\u2019s economy, making up 28.3% of the country\u2019s total exports in 2024, based on Japanese customs data.<\/p>\n

Honda is not alone in facing the brunt of global trade tensions and currency fluctuations. <\/p>\n

On July 30, Nissan reported a first-quarter net loss of \u00a5115.8 billion, citing adverse exchange rate movements and the impact of US tariffs.<\/p>\n

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. <\/p>\n

This comes despite the company having achieved record global sales in the first half of the year.<\/p>\n

Earlier this year, Honda and Nissan ended merger talks that could have led to the creation of the world\u2019s third-largest automaker by sales volume. <\/p>\n

The $60 billion deal was called off in February after months of discussions.<\/p>\n

Tokyo pushes for tariff relief<\/h2>\n

As the industry reels from tariff-related headwinds, Japanese officials have stepped up diplomatic efforts. <\/p>\n

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.<\/p>\n

Meanwhile, Japan\u2019s 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.<\/p>\n

The post Honda Q1 operating profit halves, hit by Trump tariffs and strong Yen<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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 \u00a5244.17 billion, significantly below the \u00a5323.48 billion average estimate compiled by LSEG. The sharp drop in <\/p>\n","protected":false},"author":1,"featured_media":42283,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-42282","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=42282"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42282\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/42283"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=42282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=42282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=42282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}