Honda Motor quarterly revenue halves as U.S. auto tariffs chunk
An indication marks the situation of a Honda dealership in Libertyville, Illinois, on Dec. 18, 2024.
Scott Olson | Getty Photographs
Japanese auto large Honda‘s first quarter working income fell 50% 12 months over 12 months on Wednesday, lacking estimates as a consequence of U.S. auto tariffs and a stronger yen.
Listed below are Honda’s outcomes in contrast with imply estimates from LSEG:
- Income: 5.34 trillion yen vs. 5.25 trillion yen
- Working revenue: 244.17 billion yen vs. 323.48 billion yen
Nonetheless, Japan’s second-biggest carmaker raised its full-year working revenue forecast by 200 billion yen, or 40%, to 700 billion yen in comparison with its earlier forecast of 500 billion yen.
The U.S. accounted for round 1 / 4 of Honda’s exports from Japan within the first half of the 12 months. Its international gross sales fell 5% over the interval, impacted by declines in China, Asia, and Europe.
The earnings come after Japanese car makers started reducing costs on car shipments to the U.S. in response to American President Donald Trump‘s 25% tariffs on imported automobiles, which got here into impact on April 3.
Trump final month introduced a brand new commerce cope with Japan that’s mentioned to incorporate a decrease tariff fee of 15% on Japan-made car imports to the U.S. Nonetheless, the timeframe for the change to take impact was not clarified.
In June, the worth of Tokyo’s automobile exports to the U.S. fell 25.3% 12 months over 12 months, regardless that automobile export volumes to the U.S. rose by 4.6% in the identical interval, based on knowledge from Japan’s commerce ministry.
Auto exports to the U.S. are a cornerstone of Japan’s economic system, making up 28.3% of all shipments in 2024, based on customs knowledge.
Japanese Prime Minister Shigeru Ishiba mentioned Monday he wouldn’t hesitate to talk with President Donald Trump to make sure the minimize to U.S. car tariffs is applied quickly.
The nation’s chief commerce negotiator Ryosei Akazawa left for Washington on Tuesday, looking for to press Trump to signal an government order that will verify the precise date for the auto tariffs to be lowered.
