Japan’s construction machinery makers forecast profit fall from US tariffs


Major Japanese construction machinery maker Komatsu said its operating profit for the current fiscal year is expected to fall by more than 94 billion yen, or about 655 million dollars, due to the Trump administration’s tariff measures.

The company says it estimates sales will fall 8.8 percent to 3.75 trillion yen, or roughly 26 billion dollars, for the business year through March 2026.

It also forecasts a 27.3 percent decline in operating profit of 478 billion yen, or about 3.3 billion dollars, in the same period.

Komatsu said about 50 percent of its products sold in the US are manufactured outside the country and imported.

The company expects sales to fall 52 billion yen, or about 360 million dollars, in the current business year due to an increase in the costs for its US subsidiary to import machineries and parts due to the Trump administration’s tariff policy.

It will consider exporting parts directly from Japan to other countries, bypassing the United States.

Komatsu President and CEO Imayoshi Takuya said the company would consider changing the supply source of products to reduce the impact of the US tariffs in the medium to long term.

Hitachi Construction Machinery has also estimated that its operating profit could be pushed down by around 30 billion yen, or about 210 million dollars, from this fiscal year due to the tariffs.

The company’s business in North America, including the US, accounted for 23 percent of its total sales in fiscal 2024.

Japanese electronics maker Mitsubishi Electric also said its operating profit for this fiscal year will be pushed down by about 30 billion yen, or about 210 million dollars.



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