Heavy blow from Trump tariffs on world’s largest automaker
Japanese Automaker Toyota Forecasts 21% Drop in Operating Profit Due to Trump Tariffs and Stronger Yen
Japan’s Toyota Motor Corporation predicted on Thursday that its operating profit for the current fiscal year will decline by 21%, citing U.S. President Donald Trump’s tariffs and the strengthening of the japanese yen, which have eroded part of the gains from high demand for hybrid vehicles.
The world’s top-selling automaker projected its operating income for the fiscal year ending March 2026 to reach 3.8 trillion yen ($26 billion), compared to last fiscal year’s figures, which were recently…
(Source: Webangah News Agency, via Tasnim News Agency, citing CNN)The announced figure for the last fiscal year was approximately 4.8 trillion yen, closely aligning with the average estimate of 4.75 trillion yen from a survey of 25 analysts by LSEG.Warren Buffett: Trump’s tariffs turned trade into war
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Toyota is highly vulnerable to the widespread risks posed by Trump’s tariffs—not only due to their impact on the company’s exports to the U.S., but also because of potential declines in consumer confidence indices in the U.S. and other countries.Rising prices could lead to reduced consumer trust.In an official statement, Toyota noted that its expected profit decline for the upcoming year stems from the negative effects of a stronger yen, rising raw material costs, and tariff impacts.
Like other international automakers operating in the world’s largest economy, Toyota may face increased costs…Toyota faces high labor costs and may be forced to increase investment expenses if it decides to expand its production base in the U.S.
According to the report, while Toyota’s sales decline in China has been smaller compared to other Japanese automakers, the company still struggles to curb its downward sales trend in the world’s largest auto market due to intense competition with Chinese brands.
