Toyota warns of $9.5 billion tariff hit
Toyota Motor, the world’s top-selling carmaker, has warned that it could lose nearly $10 billion due to US tariffs introduced under Donald Trump. This is the largest expected loss reported by any company so far and highlights the financial pressure global automakers are facing.
The company has also lowered its operating profit forecast for the full year by 16%, reducing it to 3.2 trillion yen (around $21.7 billion) for the financial year ending March 2026, down from an earlier estimate of 3.8 trillion yen.
Toyota’s head of finance, Takanori Azuma, said the total estimated impact of 1.4 trillion yen (about $9.5 billion) includes not only the direct costs to Toyota but also the effects on suppliers, especially those in the U.S. that import parts from Japan. However, he did not provide a breakdown of the figures.
Despite the uncertainty, Azuma said Toyota remains committed to producing cars for its American customers.
Other automakers are also feeling the impact of the tariffs, but not on the same scale. General Motors (GM) has projected a loss between $4 billion and $5 billion, Ford expects a $3 billion hit, and Stellantis, the maker of Jeep, estimates additional costs of $1.7 billion due to tariffs.
Also Read
Earlier, Toyota had estimated a 180 billion yen loss just for April and May, but this is the first time the company has given a full-year estimate.
From April to June, Toyota reported an operating profit of 1.17 trillion yen, down from 1.31 trillion yen in the same period last year. However, this result was still better than analysts’ average estimate of 902 billion yen.
Toyota’s North American division saw a major decline, moving from a profit of 100.7 billion yen a year ago to a loss of 63.6 billion yen this quarter. The region took a direct hit of 450 billion yen due to the tariffs.
