Honda Motor(US:HMC) Xin Hua She·2025-08-26 03:16Group 1: Impact on Exports and Trade - Japan's exports to the U.S. have significantly declined, with July exports dropping 10.1% year-on-year to 1.73 trillion yen, marking four consecutive months of decline [1] - Exports of automobiles to the U.S. fell by 28.4% year-on-year in July, amounting to 422 billion yen, with export volume decreasing by 3.2% to 123,500 vehicles [1] - The high tariff of 27.5% on Japanese automobiles remains in effect, as the trade agreement to reduce it to 15% has not yet been implemented [1] Group 2: Financial Performance of Companies - The net profit of 1,069 companies listed on the Tokyo Stock Exchange declined by 12% year-on-year in Q2, totaling 12.3 trillion yen, marking the first drop in three years [2] - The automotive and parts sector was the hardest hit, with profits down approximately 980 billion yen, a decline of 45% [2] - Honda's net profit decreased by 50% due to increased tariff costs [2] Group 3: Sector-Specific Challenges - The steel industry reported losses in Q2, prompting Tokyo Steel to revise its earnings forecast for the fiscal year 2025 [2] - The chemical industry saw a profit decline of 25%, with Mitsubishi Chemical Group's performance notably affected [2] - Small and medium-sized enterprises (SMEs) are under greater pressure, with concerns about reduced orders and job cuts due to rising costs from tariffs [2][3] Group 4: SME Sentiment and Future Outlook - A survey indicated that 11% of SMEs have already felt the impact of U.S. tariffs, while 50% are worried about order reductions, an increase of 12 percentage points since April [3] - Analysts suggest that U.S. tariff policies are undermining the free trade system, urging Japanese SMEs to enhance risk management and strategic planning [3]