Nissan Profit Drops 16.9% in FY2025, Hit by $1.9B Loss from U.S. Tariffs

Nissan Motor released its fiscal year 2025 earnings report on May 13, revealing an operating profit of JPY 58 billion, a 16.9% year-over-year decline, and an operating profit margin of 0.5%, down 0.1 percentage point from the previous year. The report indicated that higher U.S. auto import tariffs negatively impacted Nissan by JPY 286 billion; excluding this factor, operating profit would have reached JPY 344 billion. North America, Nissan’s largest market, was directly affected by the tariff policy, which hit the company’s two vehicle assembly plants in the U.S. as well as sales of models—approximately 40% of its U.S. volume—sourced from Mexico and Japan. Additionally, during the fiscal year, Nissan faced multiple challenges, including global supply chain instability, rising raw material costs, and intensifying market competition. The company is advancing the development and promotion of electric vehicles and optimizing its global production and supply chain management to enhance competitiveness and profitability, aiming for stable growth and new opportunities amid an uncertain environment.