The Toyota Japanese Auto forecast on Thursday is a 35% decline in the current financial year's net profit, referring to Donald Trump's vehicle tariffs among other factors.
Car manufacturers have been the most difficult among the US President's multi -trade attack.
In addition to the 25% tariff, which is already ready for imported cars, the Trump administration imposed a similar obligation on auto parts, including engines and transfers, on Saturday.
The financial year 2025-26, which began in April, now predicts a net profit of 3.1 trillion yen ($ 21.6 billion).
“The expected impact of US tariffs in April and May has initially been taken into account,” said the world's best -selling car manufacturer.
The company logged up to 3.6%less than 3.6%in less than 3.6%, but 3.6%in the year, but over 4.5 trillion yen net profit for nearly 4.8 trillion yen.
As of this month, the tariffs will affect 2025-2026 operating profit on 180 billion yen tuning.
As for the more prolonged influence of tariffs, Toyota President and CEO Koji Sato told reporters that the situation is “difficult to predict”.
“US tariffs are currently negotiating between governments and the details are still smooth,” he said.
Toyota exports 500,000 vehicles a year from Japan to the United States, Sato said.
“So in the short term we will adjust the shipments … Being in the long run until the middle, we will continue to local development of products suitable for local customers.”
However, the aim of the company is to maintain its production in Japan a year with three million vehicles, “he said” by protecting supply chains and exporting foreign currency “.
'Benchmark' forecast
Toyota shares traded 1.3%after the income statement.
The “impact and position” of the car manufacturer means that this profit forecast is being monitored in Japan, Tatsuu Yoshida, a Bloomberg intelligence auto analyst, told AFP.
“The whole country, including suppliers, would be at a loss if Toyota does not give any reference” on the effect of tariffs, he said before Thursday.
Cars accounted for about 28% of Japan exports to the United States last year.
At the end of last month, Trump began to soften the details of the tariffs for car manufacturers, pointing out an executive order to limit the impact of overlapping fees on businesses.
The President also published an announcement that gives the industry a two -year period of grace supply chains back to the United States.
Toyota sold 10.8 million vehicles worldwide in 2024, holding its crown as the world's best -selling car manufacturer.
“Car manufacturers are doing what they can when they are trying to move production to the United States, albeit major changes (immediately), because it takes time to shift production,” said Takaki Nakanishi's car sector consulting firm Nakanishi Research Institute to AFP.
Last month, Trump struck a big difference between exports of Japanese cars to the United States and the other way around.
Toyota is a second -ranked car manufacturer in the United States, where it shifted more than 2.3 million vehicles last year, while US industry manager General Motors sold only 587 Chevrolettes and 449 Cadillacs in Japan.
According to experts, Japanese narrow roads are narrow for many US models – and there are reasons for the quality and fuel efficiency of Japanese cars.
“They don't take our cars, but we take their own!” Trump said in April, accusing Japan of treating his ally “Very Bad Trade”.
This story was originally reflected on Fortune.com
