Japanese corporate profits fall due to tariffs

VTV.vn - Japanese corporate profits in the first half of fiscal year 2025 - from April to the end of September this year - have witnessed a downward trend.

Net profits of 7 Japanese auto giants drop sharply due to tariffs

Japanese corporate profits in the first half of fiscal 2025 - from April to the end of September this year - have seen a downward trend due to the impact of tariffs announced by the US, according to NHK television channel.

The combined net profit of Japan’s 503 listed companies is estimated to have reached nearly $98 billion in the period, down 0.3% from the same period last year. The decline was mainly driven by companies in sectors subject to high US tariffs, such as steel and especially automobiles, with profits at the top seven falling more than 27%. On the other hand, profits in the semiconductor and electronics sectors jumped by more than a third, thanks to strong demand for data centers and artificial intelligence, as well as the impact of a weak yen. Profits for the full year are expected to improve thanks to the implementation of the Japan-US tariff reduction agreement.

Consolidated net profit of Japan's seven major automakers fell 27.2 percent in the April-September period from a year earlier, largely due to higher U.S. tariffs, according to profit data compiled by Kyodo News on November 10.

Data showed the combined net profit of Toyota Motor Corp., Honda Motor Co., Nissan Motor Co., Mazda Motor Corp., Mitsubishi Motors Corp., Subaru Corp. and Suzuki Motor Corp. reached 2.092 trillion yen ($13.6 billion) in the first six months of the current fiscal year.

High tariffs on auto exports to the US have pushed Nissan, Mazda and Mitsubishi into losses, while a global semiconductor shortage and a slowdown in the electric vehicle market have also made their business prospects uncertain.

Under a bilateral tariff agreement between the US and Japan, the US reduced tariffs on imported cars from Japan in September from 27.5% to 15%. However, this is still six times higher than the 2.5% rate applied before April, which continues to put pressure on the profits of Japanese automakers.

Toyota said tariffs imposed by US President Donald Trump have cut its operating profit by about 900 billion yen, and its North American operations have fallen into a loss.

Source: https://vtv.vn/loi-nhuan-doanh-nghiep-nhat-ban-sut-giam-do-thue-quan-100251111085951791.htm