Mazda Forecasts Nearly $1 Billion Profit Hit from U.S. Tariffs

Reuters

11:30 JST, August 6, 2025

TOKYO, Aug 5 (Reuters) – Mazda Motor 7261.T said on Tuesday it expects a 145.2 billion yen ($987.02 million) hit to its operating profit this business year due to U.S. import tariffs, as the Japanese automaker rolled out measures to cushion the impact.

To soften the blow of the tariffs, the company said it is taking measures including changing shipping routes, increasing output at its plant in the U.S. state of Alabama and adjusting production volumes.

The impact of the higher U.S. duties on results this year remained “quite significant,” assuming that exports from Japan would face a 15% tariff and those from Mexico 25%, Chief Financial Officer Jeffrey Guyton said.

Without its countermeasures, the company would be at risk of a 233.5-billion-yen operating profit hit for the year ending March 2026, Guyton told reporters during a briefing.

Mazda has been trying to boost sales of its CX-50 crossover sport utility vehicle. The company has a major plant in the Mexican state of Guanajuato from where it exports vehicles to the U.S.

It said last week it sold about 210,000 vehicles in the United States over the first half, up 4% from a year earlier.

Mazda has forecast a full-year operating profit of ¥50 billion for the year ending March 2026, down sharply from the previous financial year.

It had previously withheld guidance due to uncertainty surrounding the U.S. tariffs.