Sony predicts $700 million in losses due to Trump tariffs

Sony expects US tariffs to significantly impact its financial performance through March 2026. Losses could reach 100 billion yen ($700 million).

This is reported by Bloomberg.

In the new report, the company estimated operating profit at 1.28 trillion yen, below the average analyst forecast of 1.5 trillion yen and almost unchanged from the result for the fiscal year ending in March 2025.

The forecast came alongside an announcement of a share buyback of up to 250 billion yen and a timetable for the partial spin-off of Sonyʼs finance division. The company plans to list the finance business on the stock exchange on September 29 and will treat it as a non-core asset in its financial statements starting this quarter.

Sony shares rose 3.7% in Tokyo on the back of the deal. Share buybacks are becoming increasingly popular among Japanese companies that have long hoarded cash and are now under pressure from investors to improve capital efficiency and shareholder returns.

Sony also said it plans to sell 15 million PlayStation 5 consoles this fiscal year, up from 18.5 million last year, and beat expectations for operating profit in the first three months of the year, earning 203.7 billion yen.

Trumpʼs tariffs

In early April 2025, the US President Donald Trump reported that he would impose tariffs on goods from other countries. The new tariffs affected more than 180 countries and territories (not including Russia, North Korea, Cuba, and Belarus, which are already under sanctions). A 10% tariff was imposed on Ukraine.

As early as April 9, Trump postponed tariffs on all but China, which received the highest tariffs of 145%, while most countries are subject to a base rate of 10%. And in mid-April, Trump threatened to impose tariffs of 245% on Chinese goods. In response, China raised tariffs on all American goods from 84% to 125%.

The US and Chinese authorities reported that they will reduce mutual tariffs for 90 days starting on May 14. More details about this can be found here.

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