Honda posts 50% fall in Q1 operating profit on tariffs, lifts full-year forecast

The automaker says full-year operating profit took a smaller hit from tariffs than initially projected in May

Published Wed, Aug 6, 2025 · 03:10 PM

Honda Motor reported a 50 per cent drop in first-quarter operating profit on Thursday (Aug 6) , as a stronger yen and the impact of US President Donald Trump’s tariffs took a toll on its results, but the company raised its full-year forecast.

Japan’s second-biggest carmaker said quarterly operating profit totalled 244.2 billion yen (S$2.1 billion) in the April-to-June period, more than 20 per cent lower than the average estimate of 311.7 billion yen in a poll of seven analysts by LSEG.

Honda said the steep 27.5 per cent tariffs on US auto imports – comprised of a previous 2.5 per cent rate and a 25 per cent levy imposed by Trump in April – pulled down its operating profit for the quarter by about 125 billion yen.

But the automaker said the impact from the tariffs on its full-year operating profit was smaller than it had estimated in May. It now expects a 450 billion yen hit for the year, compared to 650 billion yen forecast previously.

The company raised its full-year operating profit forecast to 700 billion yen from 500 billion yen, and said it expected the yen to trade at a weaker rate than it had previously estimated. REUTERS

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