Archive · 4 Aug 2025

Toyota, Honda Profits Face Headwinds from Tariffs and Yen

Toyota, Honda Profits Face Headwinds from Tariffs and Yen

Imagine two big car companies, Toyota and Honda.

They're like your favorite toy makers but for cars!

The news is that these companies might not be making as much money right now.

This is because things are getting more expensive, like when your allowance doesn't go as far because candy costs more.

One of the reasons is that the government in America has put extra costs (tariffs) on cars from other countries.

Also, the value of Japan's money (the yen) has gone up, which makes it harder for them to sell cars in America.

The car companies are trying to keep their prices competitive, even if it means they make less money on each car.

Japan is talking to the US to try and lower these costs so their car companies can do well.

Sources