Honda Motor first-quarter profit halves as U.S. auto tariffs bite

Japanese car elephantine Honda's archetypal 4th operating profits fell 50% twelvemonth implicit twelvemonth connected Wednesday, missing estimates owed to U.S. car tariffs.

Here are Honda's results compared with mean estimates from LSEG:

• Revenue: 5.34 trillion yen vs. 5.25 trillion yen
• Operating profit: 244.17 cardinal yen vs. 323.48 cardinal yen

In the archetypal 4th of its fiscal year, which ends connected June 30, 2026, Honda's gross came successful astatine 5.34 trillion yen, beating mean estimates from LSEG.

Operating nett fell astir 50% to 244.17 cardinal yen, missing LSEG mean estimates of 323.48 cardinal yen.

The net travel aft Japanese automobile makers began cutting prices connected conveyance shipments to the U.S. successful effect to American President Donald Trump's 25% tariffs connected imported vehicles, which came into effect connected April 3. 

Trump past period announced a caller commercialized woody with Japan that is said to see a little tariff complaint of 15% connected Japan-made conveyance imports to the U.S. However, the timeframe for the alteration to instrumentality effect was not clarified.

In June, the worth of Tokyo's car exports to the U.S. fell 25.3% twelvemonth implicit year, adjacent though car export volumes to the U.S. roseate by 4.6% successful the aforesaid period, according to data from Japan's commercialized ministry.

Auto exports to the U.S. are a cornerstone of Japan's economy, making up 28.3% of each shipments successful 2024, according to customs data.

Japanese Prime Minister Shigeru Ishiba said Monday helium would not hesitate to talk with President Donald Trump to guarantee the chopped to U.S. automobile tariffs is implemented soon.

The country's main commercialized negotiator Ryosei Akazawa near for Washington connected Tuesday, seeking to property Trump to motion an enforcement bid that would corroborate the nonstop day for the car tariffs to beryllium lowered.