As a result of US trade tariffs ‘ impact on the global auto industry, Japanese automaker Honda Motor predicted a 70 % decline in net profit for the 2025-26 financial year on Tuesday ( May 13 ).
The announcement comes after foe Toyota, the top-selling car manufacturer in the world, predicted a 35 % decline in quarterly net income as a result of taxes and other aspects.
Honda predicted a net profit of 250 billion yen ( US$ 1.7 billion ) in the twelve months to March 2026, according to the company’s website.
According to the report,” Price effect and recovery work” may have a negative impact on operating income and will cost the company about 450 billion yen over the long term.
President Donald Trump next month imposed a 25 % burdens on imported cars in an effort to revive the US automobile industry, striking a big blow to Chinese automakers.
CEO Toshihiro Mibe told reporters on Tuesday that the impact of tax policies in different nations on our company has been “very important” and that regular revisions are being made, making it difficult to come up with a view.
Mibe promised that Honda would” properly” decide on sales changes and look into the effects of US tariffs on supply stores.
Toyota, Japan’s second-largest manufacturer after Toyota, recorded a net gain of 835 billion yen in the previous fiscal year, which is a decrease of about 25 % on the year and significantly below its 950 billion yen forecast for February.
In Southeast Asia, Mibe reported,” Our automotive company saw a decline in sales size, primarily in China and the ASEAN place.”
Even though “hybrid auto sales increased,” it was also “impacted by enhanced subsidies for EV selling in North America”.