Key Facts
• April–June 2025 earnings of seven major automakers reveal tariff impacts.
• U.S. tariffs reduced from 27.5% to 15% under Japan-U.S. agreement.
• Combined operating profit forecast for FY2026 drops by ¥2.7 trillion.
• Subaru, with 70% U.S. sales reliance, faces ¥210 billion operating profit loss.
• Mazda’s U.S. export reliance results in ¥233.3 billion impact, 80% profit drop.
• Toyota’s U.S. sales account for 20–30%, limiting its ¥1.4 trillion impact.
• Toyota announces new domestic factory to offset U.S. tariff losses.
• Domestic new car sales projected to shrink to 4.42 million units in 2024.
• Honda considers increasing U.S. production shifts to three shifts.
• Canadian and Mexican tariff negotiations remain uncertain.
Summary
The April–June 2025 earnings of Japan’s seven major automakers underscore the varying impacts of U.S. tariffs. Subaru and Mazda, heavily reliant on U.S. sales and exports, face significant profit declines, while Toyota mitigates losses through a diversified global strategy. Toyota’s decision to build a new domestic factory highlights its focus on strengthening the Japanese market amidst declining domestic car sales. Meanwhile, Honda and Mazda are ramping up U.S. production to reduce tariff costs. However, uncertainties persist regarding tariff reductions and negotiations with Canada and Mexico, leaving the industry cautious about future developments.
