Nissan Warns of US$1.8 Billion Loss on Tariffs, Global Shortages

Nissan Motor announced it expects an annual operating loss of ¥275 billion (US$1.8 billion), for the fiscal year ending March 2026.citing the impact of US tariffs and ongoing disruptions in the global supply chain, including semiconductor and aluminum shortages.

In a statement released in Tokyo on Oct. 30, Nissan said the effect of tariffs is expected to decline by US$166 million in the second half of the fiscal year after Japan reached a trade agreement with the United States that lowered import duties on Japanese cars to 15%.

Chief Financial Officer Jeremie Papin said Nissan has implemented mitigation measures to reduce tariff exposure but did not disclose details. He added that free cash flow is unlikely to remain positive by the end of the fiscal year due to persistent supply chain risks.

“Among the main risks, one involves Nexperia chips and export restrictions, and another concerns an aluminum supply issue in North America caused by a fire. Neither is specific to Nissan,” Papin said.

The automaker noted that uncertainty surrounding semiconductor availability remains high. Manufacturers worldwide are reviewing inventories and sourcing strategies amid concerns about a renewed chip shortage following restrictions on Netherlands-based Nexperia. Growing tensions between China and the United States have also intensified pressure on the supply of rare earth magnets, key components in various vehicle systems.

Despite these challenges, Nissan reported that its first-half operating loss will be smaller than previously projected, citing cost reductions related to emissions regulations and internal savings measures. The company now forecasts a US$200 million operating loss for the first half of the fiscal year ended in September, compared with an earlier estimate of US$1.19 billion.

Nissan said it has not yet determined its full-year net income forecast and will release its second-quarter financial results on Nov. 6.