Mazda Motor said Tuesday that it swung to a net loss in the April-June period due to a hit from U.S. President Donald Trump's steep tariffs and a stronger yen.
The Japanese automaker posted a consolidated net loss of ¥42.1 billion ($286 million) for the three-month period, its first loss in the fiscal first quarter since 2020, during the COVID-19 pandemic. In the same quarter of 2024, the company reported a profit of ¥49.8 billion.
The company posted an operating loss of ¥46.1 billion in the three months to June, compared with a profit of ¥50.3 billion a year earlier, as the U.S. tariffs cost it ¥69.7 billion.
A 15% U.S. tariff on automobiles is an "extremely heavy burden on corporate finances," Mazda President and CEO Masahiro Moro told a news conference.
The automaker's sales decreased 8.8% to ¥1.01 trillion.
For the full year ending in March 2026, Mazda expects its net profit to decline 82.5% from the previous year to ¥20 billion.
The U.S. tariffs are estimated to have an annual impact of about ¥230 billion on the company's operating profit. Mazda plans to offset more than 60% of the amount by increasing U.S. production and cutting costs.
Mazda is more exposed to U.S. tariffs than Japanese rivals as it significantly relies on imports from Japan for sales in the U.S. market.
The company will consider whether to raise prices in the United States when it updates its models, Moro said.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.