Japan’s Toyota Motor Corporation has predicted a near $10 billion profit hit due to tariffs imposed by US President Donald Trump on cars imported into the country, making it the highest estimated loss among all companies. The automaker also reduced its full-year operating profit forecast by 16% to reflect rising costs for global manufacturers struggling with levies on cars, parts, and other materials.
Toyota’s head of finance, Takanori Azuma, attributed the estimate to a broader impact from tariffs, including those faced by suppliers in the US. Although he declined to specify the breakdown, the total is expected to include significant losses from the automotive sector. Other major rivals such as General Motors (GM) and Ford have reported smaller tariff-related losses.
The company’s North American operations saw a significant decline in operating profit, largely due to tariffs imposed on direct exports and imports within the region. Toyota has expanded its production facilities across multiple countries but is still exposed to the effects of US trade policies.
A recent trade deal between Japan and the US aims to reduce tariffs on Japanese auto exports to 15%, down from a previous high of 27.5%. However, a specific timeline for implementation remains uncertain. Despite this, Toyota has reported strong sales in key markets such as North America, Japan, and China. The company has also announced plans to build a new vehicle factory in Japan, targeting early next decade, although production models have yet to be finalized.
Toyota’s shares declined 1.5% following the earnings release, which highlights the ongoing pressure faced by Japanese automakers under US trade policies.
Source: https://edition.cnn.com/2025/08/07/business/toyota-profit-hit-tariffs-intl