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BOJ Flags Risk of Profit Squeeze, Investment Slowdown from U.S. Tariffs

Aug 01, 2025, 4:27 a.m. ET

AsianFin -- Japanese companies are likely to see profits decline this year due to U.S. tariffs, prompting potential cuts to capital spending, the Bank of Japan warned Friday, highlighting concerns about pressure on the country’s export-reliant economy.

Automakers in particular have absorbed higher tariff-related costs rather than passing them on to U.S. consumers, the BOJ said in its full quarterly outlook report, noting that export prices have dropped roughly 20% since April.

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