Japanese car companies lose nearly $10 billion due to US tariffs

Japan's major automakers are facing a tough time due to the impact of US tariffs, with first-half results for fiscal 2025 showing a decline in profits and growing pressure across the industry.

According to Nikkei, Japan's seven largest automakers, including Toyota, Honda, Nissan, Mazda, Mitsubishi Motors, Subaru and Suzuki, are estimated to have suffered a total loss of 1.5 trillion yen (equivalent to 9.7 billion USD) in the period from April to September 2025, due to US tariffs taking effect from April 2025.

The impact of these tariffs is severe. Nissan, Mazda and Mitsubishi Motors all reported net losses for the period, while Toyota – the world’s largest automaker – saw operating profit fall 18.6% despite increased sales. This is the first time Toyota has reported a loss in the North American market since the global financial crisis in 2008.

Honda’s net profit fell 37% year-on-year, while Subaru’s fell 45%, underscoring the widening impact of tariffs on industry profits. Many companies have opted not to raise prices in the US to protect market share – a move that helps maintain sales in the short term but reduces profits as production and logistics costs rise.

Toyota's Chief Financial Officer, Kenta Kon, recently admitted that despite the US reducing tariffs on Japanese cars to 15%, the situation is still very difficult.

Analysts warn that Japanese automakers are facing a double burden of paying higher tariffs and boosting investment in the US under bilateral trade agreements. They say these obligations could drain resources for domestic research and development and undermine the competitiveness of the industry as a whole.

Source: https://vtv.vn/cac-hang-xe-nhat-ban-lo-gan-10-ty-usd-vi-thue-quan-my-100251113102843265.htm