Japan's car firms warn of billions in losses

Toyota, Honda and Nissan expect big hits

- RIVER AKIRA DAVIS

A Honda dealership in Irvine, California. The company blamed higher tariffs for a lower profit, calling it 'the new normal'.

(REUTERS)

Japanese automakers warned that President Donald Trump's trade tariffs will cost them billions in lost profits, describing the import duties as a “new normal” that the industry will be forced to endure for the foreseeable future.

The cautionary message came two months after a trade agreement that Japan negotiated with the United States took effect. Under the deal, Tokyo agreed to invest $550 billion in the United States in exchange for a 15% across-the-board tariff on its exports. Trump had initially imposed a 27.5% tariff on Japanese exporters, a devastating tax for the country’s crucial automotive sector.