Trump's Tariffs Divide Japanese Industry as Uncertainty Looms

President Donald Trump's tariffs are causing a split within Japan Inc. Major exporters such as Toyota Motor are reducing their profit forecasts while companies like Sony and Honda claim the impact is less severe than initially feared.

The tariffs, which took effect Thursday, have left Japanese companies grappling with uncertainty regarding their future direction. While some firms see a window of opportunity, others are under pressure due to unclear timelines on tariff reductions for automobiles and fresh duties on pharmaceuticals and semiconductors.

Despite these challenges, companies like Sony are adjusting forecasts upwards, expecting a lesser impact from U.S. tariffs than initially projected. Meanwhile, the market sees fluctuating reactions as firms with U.S. ties experience shifts in stock valuations.

(With inputs from agencies.)