Canon has confirmed that it will increase prices in the United States in response to the new tariffs placed on Japanese imports. The announcement was made during the company’s Q1 2025 earnings report and investor call, where it became the first major camera brand to publicly address the immediate business implications of the ongoing trade policy shift.

“We will raise prices and are in the process of estimating the timing and amount of the increase,” Canon stated during the call, in direct response to questions about the impact of tariffs. The move follows the US government’s imposition of a temporary 10% tariff on Japanese goods, with the threat of a 24% rate still looming depending on the outcome of negotiations.

Canon’s updated financial guidance now includes a ¥25.2 billion ($177.4 million) reduction in sales expectations for its camera division, adjusting its full-year forecast to ¥1,011 billion ($7.1 billion). The company noted that much of this change is driven by fluctuating currency exchange rates, though it also acknowledged that the anticipated tariffs are factored into the outlook at a corporate level.

Despite the price adjustments, Canon remains optimistic about unit sales. It still projects a 6% year-over-year increase in interchangeable lens camera shipments for 2025, totaling 3 million units. This confidence is underpinned by Canon’s production strategy, which heavily favors manufacturing in Japan—less exposed to the more extreme 145% tariffs that the US has threatened on Chinese-made imports.

The US market currently accounts for roughly 25% of Canon’s camera-related revenue. However, Canon believes it is positioned to shield much of this business from the steepest tariff categories due to limited camera production in China. Moreover, the company has stated it maintains one to two months’ worth of inventory already imported into the US, which will delay the direct impact of increased tariffs on consumers until at least mid-year.

Canon also hinted that if it becomes unable to sell certain backordered products in the US due to tariffs, those same units may be reallocated to other markets where demand remains high. This unexpected shift could benefit customers outside the US, who may see faster fulfillment on high-demand items.

No concrete decisions have yet been made regarding changes to Canon’s global supply chain in response to the tariffs. However, executives stated that they are monitoring the situation closely and would act if necessary. They reiterated that, for now, the tariff impact is assumed to be localized to the US market.

Yet the company did leave room for uncertainty: “If the tariff issue were to trigger a global recession, our assumptions will change,” the report noted.

Canon’s willingness to publicly address the tariffs may pave the way for other manufacturers to follow suit, especially as broader consequences for global production, pricing, and inventory management begin to take shape.

As the 90-day window on the current tariff structure nears its end, industry observers will be watching closely to see how other brands respond—and how deeply the ripple effects spread through the photographic equipment landscape.