Asger Risom
Japan’s leading car manufacturers are reeling from new U.S. import tariffs, with billions of euros wiped from profits in just three months.
Toyota, Nissan, Honda, Mitsubishi, and Subaru have all reported heavy losses linked to the 25% levy introduced in April — and even after a partial rate cut, the financial pain is expected to last well into next year.
Japan’s leading car manufacturers are reeling from new U.S. import tariffs, with billions of euros wiped from profits in just three months.
Toyota, Nissan, Honda, Mitsubishi, and Subaru have all reported heavy losses linked to the 25% levy introduced in April — and even after a partial rate cut, the financial pain is expected to last well into next year.
Toyota Faces One of the Heaviest Losses
Toyota, Japan’s largest carmaker, says the tariffs have cost it an estimated €8.15 billion so far. North America is Toyota’s second-biggest market after Japan, and the company sold nearly 800,000 vehicles there between April and June alone. Profits dropped 37% year-on-year in that period.
Nissan Reports Heavy First-Quarter Loss
Nissan posted losses of €674 million in the first quarter, hit hard by the tariffs and ongoing restructuring efforts. The company is closing seven factories and cutting 20,000 jobs worldwide in an attempt to stabilise its operations.
Mitsubishi’s Profits Collapse by 97%
Mitsubishi saw net profits fall by a staggering 97.5% year-on-year in the April–June quarter. While the company managed a small increase in sales volume in North America, the tariffs added more than €83 million to its costs.
Subaru Hit Despite Strong U.S. Sales
Around 70% of Subaru’s sales come from the United States, making the brand highly exposed to American tariffs. The company estimates a €323 million hit from the levies this fiscal year, even after the partial rate reduction agreed in July.
Honda Suffers From Dual Market Pressures
Honda, which sells over half of its vehicles in North America, reported a €724 million tariff cost for the first quarter. A simultaneous sales slowdown in China added further pressure, pushing its automotive division into an operating loss.
Renault Feels the Impact Through Nissan
Renault Group, which holds a 35.7% stake in Nissan, also recorded losses linked to the Japanese manufacturer’s poor performance. The partnership’s troubles are a knock-on effect of Nissan’s exposure to U.S. tariffs.
July Deal Offers Limited Relief
In late July, Japan and the U.S. agreed to cut tariffs from 25% to 15% in exchange for major Japanese investment in America. While this will reduce future costs, automakers say the damage from earlier months has already been done.
Suzuki Avoids the Worst
Suzuki is the only major Japanese manufacturer largely untouched by the tariffs, thanks to its minimal exposure to the U.S. car market. However, the company still reported lower profits due to other global challenges, including a commodity shortage in India.
Industry Outlook Remains Uncertain
Despite regional differences, Japan’s auto industry faces a turbulent road ahead. Analysts warn that ongoing trade tensions, coupled with a slowing global economy and the shift to electrification, will continue to weigh heavily on profits.
