TOKYO/CMEDIA: The US President Donald Trump’s tariffs reportedly hurt the Japanese automaker, Honda reported today a 42 percent drop in profit for the nine months through Dec compared to a year earlier.
For the second straight year, profit of Tokyo-based Honda Motor Co. was down from 805.2 billion yen over the three quarters to 465.4 billion yen (US$3 billion),
The slowdown in electric vehicles in the U.S. market was one negative factor, according to Honda.
Although the three quarters sales dipped 2.2 percent to 15.98 trillion yen ($102.6 billion) from the previous year, Honda stuck to its full fiscal year profit forecast at 300 billion yen ($1.9 billion), the motorcycle division worked as a plus.
Due to change in the EV market, Honda said it canceled the development of some EV models, as well as lowered its global EV sales ratio projection for 2030 to 20 percent from its previous target of 30 per cent.
Japan promised to invest $550 billion in U.S. projects last year, when Trump lowered the tariffs on automobiles and auto parts from his initial announcement of 25 percent to 15 percent.
But Japan’s export-reliant economy, including the automakers, suffered a major blow from US tariffs.
Japan’s top automaker Toyota Motor Corp. reported a decline in recent profit last week.
Toyota Motor Corp also announced that its chief financial officer, Kenta Kon, will become its new chief executive and president.
Japan’s first female leader Prime Minister Sanae Takaichi, who took office in October scored a landslide parliamentary election victory for the governing party over the weekend.
Takaichi’s victory is expected to facilitate Liberal Democratic Party to push forward on its policies, including boosting government spending, especially in technology and defense.
Honda stock jumped 2.1 percent in Tuesday’s trading with the Nikkei 225 benchmark finishing 2.3 percent higher, renewing a record high for the second day straight.
