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Honda’s profit drops 50% between April and June.

Virgilio Machado by Virgilio Machado
August 6, 2025
in Latest News
Reading Time: 2 mins read
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Honda garante mais 10 unidades do novo Civic Type R para Portugal

The profit of the Japanese Honda fell by 50.2% in the quarter between April and June, to ¥196.67 billion, approximately €1.15 billion, pressured by the impact of tariffs imposed by the U.S.

The second largest car manufacturer in Japan announced that the company’s operating profit fell by 49.6% to ¥244.17 billion (€1.43 billion), while revenue decreased by 1.2% to ¥5.34 trillion (€31.25 billion) in the quarter, the first of its current fiscal year, according to financial results published this Wednesday.

Honda sold 5,143,000 motorcycles globally in those three months, an increase of 1.6%, as well as 839,000 cars, a decrease of 3.5%, primarily due to the decline in registrations in Asia, led by China.

Although its sales were strong in the United States, the tariffs imposed by President Donald Trump, combined with an unfavorable exchange rate, weighed on its results, the statement notes.

In North America, which includes the U.S., the Japanese manufacturer sold 142,000 motorcycles, 10,000 more than in the same quarter of the previous year, and 457,000 cars, 51,000 more.

It should be noted that on April 2, the Trump administration implemented a 25% increase in tariffs on vehicle imports, raising the current tariff on Japanese exports to 27.5%.

This agreement was a blow to Asian companies, which have the U.S. as one of their main markets. However, last month, Washington promised to reduce the tariff on Japanese vehicles to 15%, under the trade agreement it announced it had signed with Tokyo.

Honda attributed these results mainly to “the impact of tariffs and the negative effects of foreign currency conversion”, given the volatility of the yen in the quarter, despite its lower position against the dollar.

Tags: abril e junhoDonald TrumpEUAHondaLucrosTarifasTrimestre
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