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The
Japanese automaker said it based its report on the assumption
that Trump’s tariffs on exports from Japan, including autos,
would be 12.5% starting this month. As of now they stand at 15%.
The world’s top automaker also makes vehicles in Mexico and
Canada. Toyota’s profit in the last quarter totaled 841 billion
yen, or $5.7 billion, down from 1.33 trillion yen in the same
period the year before. Its quarterly sales rose 3%.
The status of those exports is unclear since Mexico and Canada
are beneficiaries of the U.S. Mexico Canada Agreement,
renegotiated from a 1990s pact during Trump's first term in
office, that eliminated most tariffs and trade barriers between
the three countries.
Toyota Motor Corp.’s April-June profit totaled 841 billion yen
($5.7 billion), down from 1.33 trillion yen in the same period
of 2024. Quarterly sales rose 3% to 12 trillion yen ($82
billion).
Toyota said the tariffs cost its quarterly operating profit 450
billion yen ($3 billion). Cost reduction efforts and the
negative impact of an unfavorable exchange rate also hurt its
bottom line.
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. Toyota
earned nearly 4.8 trillion yen in the previous fiscal year.
“Despite a challenging external environment, we have continued
to make comprehensive investments, as well as improvements such
as increased unit sales, cost reductions and expanded value
chain profits,” Toyota said in a statement that outlined its
efforts to minimize the impact of the tariffs.
At the retail level, Toyota sold 2.4 million vehicles globally,
with sales growing in Japan, North America and Europe from the
previous year, when global retail totaled 2.2 million vehicles.
Analysts say Toyota is likely among the worst hit by the tariffs
among global companies, even compared with other Japanese
automakers.
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