From Yahoo Finance: 2025-04-02 11:58:00

Japanese automakers face a challenge as Trump’s 25% tariffs on auto imports could lead to price hikes on economy models, impacting Nissan the most due to its reliance on the U.S. market and Mexican production. Major Japanese carmakers exported nearly 880,000 vehicles to the U.S. from Mexico last year, with Nissan leading.

Goldman Sachs predicts significant profit reductions for Mazda and Nissan, with Toyota and Honda also affected. Nissan, already struggling in the U.S., faces further challenges. Nissan’s new CEO aims to streamline decision-making after failed merger talks with Honda. Nissan declined to comment on handling tariffs.

Toyota plans to maintain current operations amid tariffs, Honda considers restructuring. Honda may shift production of its next-generation Civic hybrid from Mexico to Indiana. Macquarie’s mobility research head estimates a 20% increase for consumers due to tariffs. Automakers may not shift production to the U.S., leading consumers to trade down or turn to the used car market.

Japanese automakers may benefit from a weak yen, boosting profits when earnings are repatriated. Nissan prepares scenarios in response to tariffs, potentially raising prices first. With the yen currently favorable, automakers may still make a profit despite tariffs. Nissan’s financial situation may require price adjustments sooner.



Read more at Yahoo Finance: Analysis-US tariffs upend Japanese carmakers’ Mexico gambit