Written by YURI KAGEYAMA
Tokyo (AP) Due in major part to President Donald Trump’s tariffs, Toyota reported Thursday that its profit fell 37% in the April-June quarter, lowering its full-year earnings projections.
Related Articles
-
Intel s stock tumbles after Trump says its CEO must resign
-
Trump s broad tariffs go into effect just as US economic pain is surfacing
-
Trump plans 100% tariff on computer chips, unless companies build in U.S.
-
WhatsApp takes down 6.8 million accounts linked to criminal scam centers, Meta says
-
ESPN, WWE agree to streaming service deal for Wrestlemania
According to the Japanese manufacturer, the study was predicated on the supposition that Trump will impose 12.5% tariffs on Japanese goods, including automobiles, beginning this month. They are currently at 15%.
The leading carmaker in the world also produces cars in Canada and Mexico. Toyota made 841 billion yen, or $5.7 billion, in the most recent quarter, compared to 1.33 trillion yen during the same period last year. Sales for the quarter increased by 3%.
Since Mexico and Canada benefit from the U.S.-Canada Agreement, which was renegotiated from a 1990s agreement during Trump’s first term in office and removed the majority of tariffs and trade barriers between the three nations, the status of those shipments remains unclear.
The April-June earnings for Toyota Motor Corp. was 841 billion yen ($5.7 billion), which is less than the 1.33 trillion yen it made during the same period in 2024. Sales for the quarter increased by 3% to 12 trillion yen ($82 billion).
According to Toyota, the tariffs cost the company 450 billion yen ($3 billion) in operating profit each quarter. Its bottom line was also negatively impacted by cost-cutting initiatives and the adverse effects of an unfavorable exchange rate.
The company, which makes the Camry sedan and Lexus luxury models, forecast a 2.66 trillion yen ($18 billion) profit for the full fiscal year ending in March 2026, down from an earlier forecast for a 3.1 trillion yen ($21 billion) profit. In the last fiscal year, Toyota made close to 4.8 trillion yen.
Toyota said in a statement outlining its attempts to lessen the impact of the tariffs, “We have continued to make comprehensive investments, as well as improvements such as increased unit sales, cost reductions, and expanded value chain profits, despite a challenging external environment.”
Toyota sold 2.4 million vehicles worldwide at the retail level, with sales in North America, Europe, and Japan increasing from the 2.2 million vehicles sold globally the year before.
According to analysts, especially when compared to other Japanese automakers, Toyota is probably one of the multinational corporations most negatively impacted by the tariffs.
Toyota also revealed on Thursday that it is constructing a new auto assembly facility in Japan, which it anticipates opening in the early 2030s. It is purchasing the location of the carmaker’s headquarters in Toyota City, Aichi Prefecture, central Japan.
According to Toyota, the plant will be a part of the company’s strategy to retain a production capacity of 3 million vehicles in Japan, however the models to be produced there are still up for debate. Touted as a future facility, it will also have innovative technologies designed for a diverse workforce, according to Toyota.
Threads: https://www.threads.com/@yurikageyama is where you can find Yuri Kageyama.
