Japanese robotics firm Fanuc Corp announced on April 22, 2025, that it cannot provide earnings forecasts for the fiscal year ending March 2026.

The company cited uncertainty regarding the impact of US tariffs on the global economy as a primary reason.

In its annual earnings report, Fanuc said it would further evaluate these uncertain factors.

It will release forecasts once a reliable assessment is possible.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Material cost pressures are reshaping robotics manufacturing economics

The 25% tariff on steel and 10% on aluminum directly impacts companies like Fanuc, as these materials are essential components in industrial robotics manufacturing 1.

These tariffs affect one-third of the 100 million tons of steel and over 90% of aluminum used by U.S. manufacturers, creating significant upstream cost pressures throughout the supply chain 1.

This industry-wide challenge has already affected other robotics companies. For example, iRobot reported a $5 million reduction in profitability due to tariffs, forcing them to raise consumer prices 2.

The robotics sector’s projected growth rate of 18.5% CAGR could be jeopardized by these increased material costs, explaining why companies like Fanuc are hesitant to provide forward-looking guidance 3.

For Japanese manufacturers specifically, the combination of rising commodity prices and potential new tariffs creates a double-pressure scenario that makes financial forecasting particularly challenging 4.

2️⃣ Tariffs create complex secondary effects throughout manufacturing ecosystems

The uncertainty from tariffs has triggered widespread “panic buying” among manufacturers rushing to secure materials before prices increase further, distorting normal supply-demand patterns 1.

This stockpiling behavior was evident in Japan’s recent trade balance, which temporarily benefited from companies frontloading purchases ahead of anticipated U.S. tariffs—creating short-term gains but longer-term uncertainty 4.

The Consumer Technology Association reported that tariffs cost the tech industry $1 billion monthly, representing a significant drag on a sector that comprises 10% of U.S. GDP and employs over 15 million people 2.