Japan corporate earnings face first drop in 6 years on tariffs, stronger yen

Autos and steel among sectors hardest hit by changing business environment

20250522N Cars for export

Major Japanese automakers' reliance on the U.S. market makes them vulnerable to tariffs. © Kyodo

MAYUMI KUZE and KOSUKE OKAMOTO

TOKYO -- Total net profits at listed Japanese companies are projected to fall 7% in the fiscal year ending March 2026, the first drop in six years, as trade and currency headwinds buffet manufacturers.

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