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President Trump's 25 percent tariff on foreign-made autos, which began in April
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is hitting two major Japanese automakers very hard. Honda is now forecasting a $4.4 billion drop
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in profits this fiscal year, while Nissan expects the tariffs will cost the company at least $3
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billion. The Wall Street Journal reports both automakers released their guidance for the months
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ahead on Tuesday, and the downturn could rattle Japan's economy, as automaking is one of Japan's
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most important industries. The Journal reports car exports make up about one-third of all products
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that the country sends to the U.S. Honda officials anticipate profits will drop by 70 percent for the
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year ending in March of 2026. Nissan did not forecast for the entire year, but said it is
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planning a multi dollar loss for the second quarter ending in June on top of a billion loss in the first three months of 2025 At a news conference Honda CEO Tashihiro Miba revealed that Honda is already looking for ways to boost production in the United States
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The company announced in March it had decided to make its civic hybrid model in Indiana starting in
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2028 instead of Mexico in 2027 following the president's tariffs announcement. In addition
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And Miba says Honda increased inventory in the U.S. in the first quarter of this year, specifically to avoid tariffs
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Many Honda cars sold in the U.S. are imported from Mexico and Canada, which are also subject to the 25 percent Trump tariffs
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The Journal says Nissan expects the tariffs to affect 300,000 vehicles that it produces in Mexico and 120,000 that it makes in Japan
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Back in November, Nissan announced it would slash 9,000 jobs under a restructuring plan
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It has now upped that number to 20,000. For more unbiased updates, download the Straight Arrow News app or go to san.com
