Toyota Projects $1.3 Billion Profit Impact from Two-Month Tariff Duration

Toyotarecently announced on May 8 that it expects a notable drop in its operating profit—around 20% or roughly $1.3 billion—for the fiscal year ending in March.

The New York Times reported that this forecast only considers the impact of tariffs imposed during April and May. Toyota’s CEO, Koji Sato, mentioned during a briefing that predicting future effects is quite challenging due to the rapidly changing landscape of trade relations. “The auto industry is currently navigating through turbulent waters,” he noted.

This situation underscores Japan’s precarious position as it continues negotiations with the trump administration regarding trade policies.

While trump has temporarily suspended a broad 24% tax on imports from Japan until early July, existing tariffs of 25% on vehicles and parts are already taking a toll on Japan’s key exports to the U.S.—namely cars and components.

On April 30, Japan’s central bank slashed its economic growth predictions significantly, attributing this adjustment to what they termed an “unprecedented level” of U.S. tariffs.