Honda profit plunges as Trump tariffs, chip shortage weigh on earnings
Honda Motor Co. reported Friday that its profit for the first fiscal half through September fell 37% year-on-year, as the impact of U.S. tariffs imposed under President Donald Trump outweighed gains from strong motorcycle sales.
The Tokyo-based automaker posted a net profit of 311.8 billion yen ($2 billion) for April–September, down from 494.6 billion yen a year earlier, News.Az reports, citing AP.
Revenue slipped 1.5% to 10.6 trillion yen ($69 billion).
Honda also cut its full-year profit forecast through March 2026 to 300 billion yen ($2 billion), a 64% decline from last year’s 835.8 billion yen, citing unfavorable currency rates and higher tariff costs that reduced operating profit by 164 billion yen ($1.1 billion).
Despite headwinds, Honda achieved record motorcycle sales of 10.7 million units globally, with strong performance across Asia. However, global vehicle sales dipped to 1.68 million from 1.78 million, with declines in Japan, Europe, and parts of Asia.
Adding to its challenges, the company continues to grapple with a semiconductor shortage linked to export restrictions involving Dutch chipmaker Nexperia, disrupting production in North America and Mexico.
Honda’s shares rose 1.8% to 1,585 yen ($10) in Tokyo trading on Friday.
Similar news
