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- Honda braces for $3B tariff expense
Honda CEO Toshihiro Mibe
Driving the news: Honda is forecasting a massive ¥650 billion ($4.4 billion) hit from U.S. tariffs, though it believes it can offset about ¥200 billion ($1.35 billion) through strategic countermeasures, like moving Civic hybrid production from Japan to the U.S.
For context: The Japanese automaker expects its annual operating profit to plummet 59% to ¥500 billion in the fiscal year ending March 2026, down from ¥1.2 trillion in the previous year.
Why it matters: CEO Toshihiro Mibe described the tariff impact as "huge," though he noted the projection as a worst-case scenario, adding "this is the minimum tariff impact, but it will continue to change as time goes by.”
What we're watching: Despite the U.S. easing some tariffs against China and the U.K., the automotive industry continues to face significant challenges with levies exceeding 25% on finished car imports, plus additional tariffs on certain components and raw materials like steel and aluminum.
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