U.S. Auto Tariffs Hammer Japanese Carmakers: Seven Firms Lose $13.7B in Nine Months, Mazda and Nissan in the Red

Japan's seven major automakers collectively lost ¥2.1 trillion (approximately $13.7 billion) in operating profit between April and December 2025—a 28% year-on-year decline—due to the U.S. sharply increasing tariffs on imported automobiles. The United States raised the tariff on Japanese-made cars from 2.5% to 27.5% in April 2024, before lowering it to 15% in September—still six times the original rate. As the second-largest exporter of vehicles to the U.S., Japan relies on the American market for nearly 40% of its global auto sales. Among the affected companies, Mazda fell into losses due to its heavy reliance on imports, while Nissan faced mounting pressure amid restructuring efforts. Subaru, which derives 70% of its sales from the U.S.—half of which are imported from Japan—saw its profits plunge by 82% during the same period. Total losses for the current fiscal year are projected to reach ¥2.5 trillion. In response, automakers are implementing cost-cutting measures, adjusting pricing strategies, and deepening partnerships. For example, Mazda is expanding production capacity at its joint U.S. plant with Toyota, while Mitsubishi is exploring coordinated production with Nissan’s North American facilities.