Honda Reports a 50% Decrease in Revenue Due to Tariffs from Trump Administration

• Honda reported a 50% decrease in revenue due to tariffs on imports
• The company forecasts a reduction in tariff expenses of 450 billion yen
• Sales of vehicles in North America remain stable

The Japanese automaker Honda announced a 50% decrease in revenue in the last quarter in connection with the tariffs imposed on automobiles, which were initiated by Donald Trump. Along with financial results for the three months leading up to June, the company’s operating profit amounted to 244 billion yen (approximately 1.2 billion pounds sterling), which is significantly lower than in the previous year.

The main reason for the drop in revenue was losses from tariffs amounting to 124 billion yen, as well as losses from electric vehicle sales in the USA totaling 113 billion yen. At the same time, Honda noted that the impact of tariffs would be smaller than previously expected, as the company was able to raise prices on vehicles in the USA.

Trump announced a 25% tariff on all imported vehicles in early 2025, which would increase the overall tariff on imports from Japan to 27.5%. However, in July, a trade agreement was reached with Japan that limits tariffs to 15%. This was a positive step for Honda, as the company forecasts that revenue from tariffs this financial year will amount to 450 billion yen (approximately 3 billion dollars), which is less than previously anticipated.

Despite the negative impact of tariffs, Honda reported strong sales in North America. However, the company also reported losses from electric vehicle sales in the USA and noted expenses for developing new electric vehicles. According to forecasts, Honda plans to sell 3.62 million vehicles worldwide this financial year.

Tags: Politics/Automotive