Zhong Guo Qi Che Bao Wang·2025-09-05 01:14Core Points - Japan's manufacturing sector has experienced a significant decline in profits due to the impact of U.S. tariff policies, with overall regular profits dropping by 11.5% year-on-year for two consecutive quarters [1][4][7] - The non-manufacturing sector, particularly in tourism and services, has shown resilience with a profit increase of 6.6% compared to the previous year [3][4] Manufacturing Sector Impact - The manufacturing sector's regular profits fell sharply, particularly in the transportation machinery sector, which includes the automotive industry, with a decline of 29.7% [4][7] - Other affected industries include steel, which saw a profit drop of 48.2%, and metal products, which experienced a 36.6% decrease [4][7] - The overall regular profit for the manufacturing sector was recorded at 35.8338 trillion yen, marking a historical high for the quarter, but the decline in specific sectors overshadowed this achievement [3][4] Tariff Effects - U.S. tariffs imposed on imported automobiles and key components have significantly impacted Japanese exports, with tariffs on passenger cars rising from 2.5% to 27.5% [7][9] - The steel industry faced additional challenges as U.S. tariffs on steel and aluminum products increased from 25% to 50%, leading to losses in the Japanese steel sector [7][8] - In July, Japan's exports to the U.S. fell by 10.1% year-on-year, with automotive exports specifically declining by 28.4% [8][9] Company-Specific Impacts - Major Japanese automakers reported substantial profit losses due to U.S. tariffs, with Honda's net profit plummeting by 50.2% in the latest quarter [11] - Toyota estimated a loss of 450 billion yen in operating profit due to tariffs, with an expected total loss of 1.4 trillion yen for the fiscal year [11] - Other automakers, including Mazda, Nissan, Subaru, and Mitsubishi, also reported significant losses, prompting them to revise their profit forecasts downward [11]