TOKYO, August 6. /TASS/. Japanese automaker Honda Motor has reported a more than 50% decline in profit for the Q2 of 2025 (April through June) compared to the same period last year. The company attributed the sharp decrease, in part, to customs tariffs imposed by the United States in April, according to its financial report.

The report stated that net profit for the period fell by 50.2% year-on-year, amounting to 196.6 bln yen ($1.33 bln). Operating profit declined by 49.6% to 244.1 bln yen ($1.65 bln), primarily due to the impact of tariffs, as well as adverse effects from foreign exchange rate fluctuations, the document published on Honda’s official website said.

The company forecasted net profit for the current fiscal year (April 2025 to March 2026) to reach 420 bln yen ($2.84 bln), marking a 49.8% decrease from the previous reporting period. Total losses related to tariffs during this time frame are estimated at 450 bln yen (over $3 bln).

In July, Japanese Prime Minister Shigeru Ishiba announced that Tokyo and Washington had reached an agreement under which the United States would reduce tariffs on Japanese goods from the previously declared 25% to 15%. Furthermore, the US tariffs introduced in April on imports of Japanese automobiles will also be reduced to 15%. US President Donald Trump confirmed that the two sides had concluded a "landmark deal" under which Japan would invest $550 bln in the United States.

However, on August 5, Kyodo news agency reported that Japanese cars are still subject to a 27.5% tariff in the United States. According to the report, Japan’s chief negotiator in trade talks with the US, Minister for Economic Revitalization Ryosei Akazawa, is expected to visit Washington to seek a reduction in the tariff rate. Automobiles account for approximately 28% of Japan’s exports to the United States.