Japanese automaker Mazda has projected a significant deterioration in its business performance this year due to U.S. tariff impositions and other factors.
According to Kyodo News and Nihon Keizai Shimbun (Nikkei) on August 6, Mazda forecasts its consolidated net profit for the fiscal year 2025 to fall by 82.5% year-on-year to 20 billion yen (approximately 188.4 billion won). The company expects sales to decrease by 2.4% to 4.9 trillion yen and operating profit to decline by 73.1% to 50 billion yen.
The company explained that its performance is expected to worsen due to the tariff policies of U.S. President Donald Trump. While the United States accounts for a large proportion of Mazda's total export volume, the company's production ratio within the U.S. is low, so it is expected to suffer a greater impact from the tariffs compared to its competitors.
Mazda anticipates that its vehicle sales in the U.S. market for fiscal year 2025 will decrease by 8% from the previous year to 400,000 units. At a press conference the previous day, Mazda President Masahiro Moro stated that, "Since the tariff rate has risen from the previous 2.5% to 15%, the burden is very significant," and emphasized that the company will accelerate cost reductions through structural reforms.
Japan had previously reached an agreement through trade negotiations with the United States to lower the reciprocal tariffs imposed by the U.S. from the previously announced 25% to 15%, and to reduce automobile tariffs from the previous 27.5% to 15%.
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