Japan’s five major trading houses are grappling with significant challenges as uncertainties stemming from U.S. President Donald Trump’s policy shifts disrupt their ability to plan ahead. Mitsubishi Corp. and Mitsui & Co. show-stoppers from the world’s trading giants. Both companies are now forecasting net profit to slide going into the fiscal year ending in March 2026. This is the third year in a row that both companies have projected a downturn in earnings.
U.S. policies have triggered a domino effect throughout the international economy. These developments are transforming trade patterns and changing the calculus on future economic growth. Tokyo-based Mitsubishi Corp. expects a 40% drop in profits. At the same time, Mitsui & Co. is bracing for a fall in earnings. The uncertainty surrounding international trade agreements and tariffs, driven by recent shifts in U.S. policy, complicates the market landscape for these firms.
Sumitomo Corp., Itochu Corp. and Marubeni Corp., three of Japan’s five major trading houses, are expecting a massive hit. This would force them to swallow the impact on their bottom line, amounting to tens of billions of yen. The cumulative result of these projections is an alarmingly fundamental trend, one that is shifting the demographic landscapes of sectors like the trading industry in Japan.
The difficulties experienced by these firms highlight the importance of tactical nimbleness in our rapidly evolving global economy. The U.S. is in the midst of changing its trade paradigm. To this end, Japan’s trading houses are forced to operate in a thick mist of uncertainty affecting not only their long-term profits but everyday business.