Tariffs Starting to Slow Growth: Morgan Stanley's Zezas
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Yahoo
18 minutes ago
- Yahoo
Toyota, Honda brace for profit falls as US tariffs, strong yen weigh
By Daniel Leussink TOKYO (Reuters) -Toyota Motor and Honda Motor are expected to report weaker first-quarter earnings this week, as U.S. import tariffs and a stronger yen weigh on profits despite solid demand for hybrids in their biggest overseas markets. Japanese automakers face growing uncertainty in the U.S., where tariffs on imports are pushing up vehicle prices and testing the resilience of consumer demand. Investors will be watching for clues on how Japan's two largest automakers are offsetting such burdens. Toyota, the world's top-selling automaker, is forecast to post a 31% year-on-year drop in operating profit to 902 billion ($6.14 billion) yen on Thursday, according to the average estimate of seven analysts polled by LSEG. That would mark its weakest quarterly result in more than two years. Honda is expected to report a 36% decline in operating profit to 311.7 billion yen on Wednesday, its second straight quarterly drop. The automaker has already forecast a 59% fall in full-year profit. Both companies face the prospect of 15% tariffs on Japanese auto imports into the U.S. from levies totalling 27.5% previously, following a bilateral trade deal last month. Other Japanese automakers and suppliers have also flagged weaker earnings, citing the same pressures from tariffs and the stronger currency compared to the same period a year ago. "The first quarter is going to be a rough one for Toyota," said Christopher Richter, autos analyst at CLSA. "Things should get easier going forward," he said, citing some relief from the lowered tariffs. Particularly Honda's reliance on the U.S. has deepened in recent years as sales in other regions falter. Outside of the U.S., both companies produce key models for the U.S. market in Canada and Mexico. For Honda, the U.S. accounted for around two-fifths of total sales in the first half of the year. Its global sales fell 5% over the period, dragged down by double-digit declines in China, Asia and Europe. Toyota's global sales rose 6% over the period supported by strong demand for petrol-electric hybrids which typically carry higher margins than conventional petrol cars. Its Camry and Sienna hybrids remain strong sellers in the U.S. The company has also performed better in China in recent months, posting a 7% year-on-year increase in vehicle sales over the first half of the year. Honda said in May that it was scaling back its investment in electric vehicles given slowing demand and would be focusing on hybrids with various revamped models. It had earlier delayed plans to build an EV production base in Canada due to slowing demand for electric cars. Investors will be looking for updates from both companies on their pricing strategy and any revisions to full-year forecasts. The Japanese automakers have been taking measures such as transfer pricing to help alleviate the burden from the import tariffs, CLSA's Richter said. Shares of Toyota are down 16% so far this year, while those of Honda are flat. ($1 = 146.8900 yen) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Times
18 minutes ago
- New York Times
Corrections: Aug. 5, 2025
Because of an editing error, an article on Saturday about the impact of President Trump's shifting tariff levels on the African nation of Lesotho misstated the day Lesotho's 15 percent tariff rate was announced. It was Thursday night, not Friday night. An article on Monday about a city in Kansas suing over a planned ICE detention center misstated the language in a poster seen at a protest of an immigration detention facility in Leavenworth, Kan. The poster said that Leavenworth is 'more than a prison town,' rather than 'not just a prison town.' An article on Friday about Ford Motor announcing that it lost money in the second quarter as tariffs took a toll on its business misstated the day that Ford reported its second-quarter earnings. It was Wednesday, not Tuesday. A picture from the streaming outlet TBPN published with an article on Friday about A.I. researchers' pay packages misidentified a Microsoft employee who used to work at Google's DeepMind lab. The person shown in the image was not Amar Subramanya. An article on Saturday about the negative impact that the Trump administration's tariffs are having on businesses they were meant to help misstated the month that the United States lost 11,000 manufacturing jobs. It was July, not June. The article also misstated the number of manufacturing job losses in June, based on initial estimates. The revised number was 15,000, not 6,000. The earlier estimate was 6,000. An article on Sunday about a veteran lifeguard's Friday routine misstated, in some instances, Javier Rodriguez's surname on second reference and that of his three adult children. Their surname is Rodriguez, not Hernandez. Errors are corrected during the press run whenever possible, so some errors noted here may not have appeared in all editions. To contact the newsroom regarding correction requests, please email nytnews@ To share feedback, please visit Comments on opinion articles may be emailed to letters@ For newspaper delivery questions: 1-800-NYTIMES (1-800-698-4637) or email customercare@
Washington Post
28 minutes ago
- Washington Post
Trump says he doesn't trust the jobs data, but Wall Street and economists do
WASHINGTON — The monthly jobs report is already closely-watched on Wall Street and in Washington but has taken on a new importance after President Donald Trump on Friday fired the official who oversees it. Trump claimed that June's employment figures were 'RIGGED' to make him and other Republicans 'look bad.' Yet he provided no evidence and even the official Trump had appointed in his first term to oversee the report, William Beach, condemned the firing of Erika McEntarfer , the director of the Bureau of Labor Statistics appointed by former President Joe Biden. The firing followed Friday's jobs report that showed hiring was weak in July and had come to nearly a standstill in May and June, right after Trump rolled out sweeping tariffs .
