US tariffs to shave 10% off Japan Inc. earnings
Earning season is wrapping up here in Japan, and we’ve seen very interesting numbers. Toyota Motor, which is the world’s largest automaker, said it expects net profit to drop 35% this year in large part due to Trump’s harsh tariffs. My colleague Jedi and I wrote a story last month looking at how Trump’s trade war could reduce up to 10% from Japanese company’s earnings. How this happens is during times of uncertainty, we often see increased demand for the yen which is considered a safe haven asset that then bites into exporters profit. Also, Goldman Sachs says that around 20% of Japanese company’s earnings come from the US which is among the highest worldwide. Of course, all of this depends on whatever trade deal Tokyo could ek out with Washington. So, that leads me to ask you, what sort of deal do you think Tokyo could reach with Washington? And do you think Trump’s surprise visit to a meeting between American and Japanese officials last month meant anything? Please let me know your thoughts in the comments.
The earnings season has been relatively gloomy for Japan Inc., but its future outlook depends on the kind of trade deal Tokyo can negotiate with Washington. Chief Markets Correspondent Lisa Kim explains.
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