Toyota predicts $1.3 billion hit due to U.S. tariffs

Published 08/05/2025, 12:16
© Reuters.

Investing.com -- Toyota Motor Corp (NYSE:TM, 7203.T) has stated that the tariffs imposed by US President Donald Trump are expected to cause a ¥180 billion ($1.3 billion) decrease in operating income over a two-month period.

Toyota is among a number of companies trying to manage the effects of the ongoing trade disputes.

CEO Koji Sato, speaking at a briefing after the results were released, said the specifics of the tariffs are continuously changing, making it challenging to take action or estimate the impact. Toyota is considering expanding local product development and manufacturing in the US over the medium to long term, according to Sato.

On Thursday, Toyota announced that the effects for April and May have been tentatively factored into their calculations, but the situation remains uncertain. This is expected to influence the company’s full-year results. Toyota’s projected operating income of ¥3.8 trillion for the year ending March 31, 2026, is significantly less than the ¥4.7 trillion analysts had anticipated.

Toyota reported that its operating profit for the most recent financial year was ¥4.8 trillion, a notable decrease from the record ¥5.35 trillion during the 2024 fiscal year, which was a record high for any Japanese company. The carmaker reported a modest increase in profit of 0.3% in the fourth quarter, bringing it to ¥1.1 trillion.

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