Major Japanese trading houses, backed by Warren Buffett, this week released cautious profit forecasts for the year, setting aside millions to hedge against persistent tariff uncertainty. Mitsubishi Corp. and Mitsui & Co. forecast this fiscal year’s net income will fall 26% and 14%, respectively, from a year earlier, according to filings. Sumitomo Corp. and Marubeni Corp. expected theirs to rise 1.4% while Itochu Corp. saw a 2.2% climb. All five firms allocated funds as a buffer to hedge against tariff impacts, they said, with Sumitomo and Itochu setting aside 40 billion yen . Japan is among several countries clamoring to cut a deal with the US to avoid tariffs. Its chief trade negotiator Ryosei Akazawa said the latest round of discussions in Washington was a frank and open one, and that he aims to step up talks in mid-May. “Uncertainty surrounding US policy developments may lead to postponed capital investments, further raising concerns about an economic downturn,” Mitsui said. Meanwhile, Sumitomo said it will face “a certain degree of indirect impact” from the tariffs. Though the country’s trading houses have been minimally affected so far, they could face a 5-8% drop in net income for every 10% strengthening of the yen, according to Macquarie analyst Sonny Lee. Still, the conglomerates expect some tailwinds from the punitive American trade measures and their potential to disrupt global supply chains. Mitsui expects to zero in on such opportunities through its North American and energy and chemical businesses. Marubeni also sees upsides in the used aircraft engines business, while projecting limited negative impact on its crop trading in US, Europe and China. Sumitomo’s CEO Shingo Ueno said tariffs could help their North America steel pipe business. “We expect either neutral or positive impacts,” Marubeni’s Chief Executive Officer Masayuki Omoto said. The companies also expect crude oil prices to trend between US$60 to $71 per barrel due to sluggish demand, even though supply concerns persist over tensions in the Middle East. ©2025 Bloomberg L.P. This article was generated from an automated news agency feed without modifications to text. in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. Follow these steps: 1. **Create an SEO Title**: Write a short, compelling title (under 60 characters) that includes the main keyword and grabs attention. 2. **Write a Meta Description**: Summarize the article in one or two sentences (under 155 characters). Make it engaging and include the primary keyword naturally. 3. **Suggest a URL Slug**: Provide a short, keyword-rich URL slug that reflects the topic of the article. 4. **Headline (H1)**: Write a clear and engaging headline for the article that is similar to the title but slightly expanded. 5. **Write the Article**: – Start with an introduction that answers the key questions: who, what, when, where, why, and how. – Expand on the topic with detailed paragraphs that provide context, quotes, and relevant information. – Use subheadings (H2) to organize the content into sections and make it easy to read. – Include related keywords naturally throughout the article. – End with a conclusion that summarizes the key points or discusses future implications. 6. **Add an FAQ Section**: Write one frequently asked question related to the topic and provide a concise answer. Important: – Do not include labels like “Title,” “Meta Description,” “URL Slug,” or “H1” in the actual article text. – Keep all SEO elements separate from the main content. – Ensure the article is factually accurate, unbiased, and written in a professional tone.
Japanese trading companies supported by Buffett are preparing for the effects of tariffs.
