Declining Demand and Margins Due to U.S. Tariff Policy and Tariff Rate Changes
First written in FY2025. 3 of 4 entries say "Materialised", first in FY2026-H1. Latest entry: 2026-10-13.
Hks moved to the "Worse" side of this theme in 2026, the same year as the typical company in this theme.
The whole theme swung hardest in 2026: 13 of 20 companies on the "Worse" side.
9 other companies' latest entry also says "Materialised".
- FY2026-H1MaterialisedAnnual report
「Particularly in the US distribution channel, in addition to progress in adjusting inventory stockpiled by local distributors during the COVID-related demand surge, the company has been carefully passing on US import tariff costs borne by the company to selling prices while monitoring local demand and factory operating rates. This has created a price advantage over competitors, and sales have continued to grow since the start of the current period.」
The disclosure stated that the burden of U.S. import tariffs had actually arisen and that the Company was proceeding cautiously with passing the costs on to selling prices. The payment of tariffs also caused sales and distribution expenses to increase by ¥107 million year on year. - FY2025First statedAnnual report
「The issue of import tariffs, particularly in the United States, has had a significant impact, including a decline in customer demand resulting from higher local sell-out prices and a decline in the Company's margins due to the burden of export tariffs. Responding to U.S. trade policy is therefore an urgent issue for the Company.」
U.S. tariff policy was described independently for the first time, with declining customer demand and lower margins due to the burden of export tariffs identified as key risks. The disclosure also stated that sales and distribution expenses increased and U.S. sales declined due to the impact of tariffs on shipments to the United States.