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- Japan's Honda forecasts drop in profits despite strong US auto sales</p>
<p>YURI KAGEYAMA August 6, 2025 at 1:42 PM</p>
<p>1 / 2Japan Earns HondaFILE - This Feb. 14, 2013, file photo shows a Honda logo on the trunk of a Honda automobile at the Pittsburgh Auto Show, in Pittsburgh. (AP Photo/Gene J. Puskar, File)</p>
<p>TOKYO (AP) — Honda's profit in the last quarter was half of what it was a year earlier, the company said Wednesday, as automakers were hit by 25% tariffs on vehicle exports to the United States.</p>
<p>The Japanese automaker reported Wednesday that its April-June profit totaled 196.7 billion yen ($1.3 billion), about half of what it earned during the same period the previous year at 394.7 billion yen. Quarterly sales edged 1.2% lower to 5.3 trillion yen ($36 billion).</p>
<p>The Tokyo-based maker of the Accord sedan and Asimo robot revised upward its profit forecast for the full fiscal year through March 2026 to 420 billion yen ($2.9 billion), better than its earlier estimate of 250 billion yen. The improved projection still marks a 50% drop from the previous year's results.</p>
<p>Honda stuck to its forecast to sell 3.62 million vehicles worldwide in this fiscal year.</p>
<p>It said its motorcycle business in Brazil and Vietnam was solid, while North American car sales also remained strong despite headwinds from the tariffs.</p>
<p>The negative impact of the tariffs was estimated at about 450 billion yen ($3 billion), based on "a detailed review," according to Honda.</p>
<p>The company's auto sales declined year-on-year in Japan, the rest of Asia and Europe. Honda's quarterly global auto sales totaled 839,000 units, down from 869,000 the same period last year.</p>
<p>Honda also said it posted a one-time expense related to electric vehicles, such as losses related to EVs sold in the U.S. and write-offs for lineup changes.</p>
<p>Eiji Fujimura, Honda's chief financial officer and director, welcomed an agreement between the U.S. and Japan to cut an initially planned 25% tariff on imported autos to 15%. That will work as "a positive" for the company's business, customers, suppliers and shareholders, he said, even if it's higher than the original level.</p>
<p>Fujimura stressed that Honda has long tried to promote free trade and fair competition around the world to deliver quality products and, in his words, "contribute to the local community."</p>
<p>"Now we must face up to this new normal," he told reporters.</p>
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<p>Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama</p>
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