Due to the impact of the U.S. tariffs, the profits of Japan's seven major car companies may shrink significantly.

According to Kyodo News on the 7th local time, major Japanese car manufacturers such as Toyota and Honda expect that their total operating profit for the fiscal year 2025, from April 2025 to March 2026, will decrease by approximately 2.67 trillion yen, equivalent to about 130.2 billion yuan, due to the impact of U.S. government tariffs on cars. This scale is equivalent to more than 30% of the operating profit of the seven car companies in the previous fiscal year. The companies plan to take urgent measures, including cost reduction or changing export destinations.