[Alpha Biz= Kim Jisun] TOKYO, August 6, 2025 —Japanese automakers are reporting disappointing second-quarter earnings as the effects of recent U.S. auto tariffs ripple through the industry.
Honda Motor Co. announced on August 6 that its consolidated operating profit for the April–June quarter stood at ¥244.1 billion (approximately KRW 2.3 trillion), a 49.6% drop from the ¥484.7 billion posted during the same period last year.
The company’s operating margin also fell significantly, dropping from 9.0% to 4.6% year-over-year.
Honda stated, “Revenue declined only slightly to ¥5.34 trillion (approx. KRW 50.3 trillion), down 1.2%, but operating profit was slashed by ¥124.6 billion (approx. KRW 1.17 trillion) due to the impact of U.S. tariffs, causing a sharp decline in profitability.”
The drop stems from a 25% tariff imposed on automobile imports by the Trump administration starting April 2, 2025. However, recent trade negotiations have led to a revision, lowering the tariff rate to 15% for countries including Japan and South Korea.
Despite the near-term setback, Honda raised its full-year operating profit forecast for FY2025 (April 2025–March 2026) to ¥700 billion (approx. KRW 6.6 trillion), an increase of ¥200 billion from its previous outlook. Still, this represents a 42.3% decrease compared to the ¥1.21 trillion operating profit recorded in FY2024.
Meanwhile, Mazda Motor Corporation announced on August 5 that it recorded an operating loss of ¥46.1 billion (approx. KRW 434 billion) for the same quarter, a sharp reversal from the ¥50.3 billion operating profit reported in the prior year.
Mazda cited U.S. tariffs as a major factor contributing to the loss and projected full-year operating profit of ¥50 billion (approx. KRW 470 billion) for FY2025, marking a steep 73.1% decline from the previous year.
Mazda’s high dependency on the U.S. market for exports exacerbated the financial blow. President Masahiro Moro addressed the issue in a press conference, stating, “The U.S. tariffs present a significant burden in practical terms,” and vowed to accelerate cost-reduction and structural reform efforts to mitigate the impact.
As tariffs tighten margins and weigh heavily on profits, Japanese automakers are under mounting pressure to adapt their strategies for global competitiveness, particularly in their largest export market, the United States.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
