Trump tariffs shock: Japanese automaker, Toyota, slashed its full-year earnings forecast on Thursday, 7 August 2025, primarily due to the tariffs imposed by US President Donald Trump on the nation. The company also recorded a 37% fall in its net profit for the April-June quarter of 2025, reported the news agency PTI.
This comes after US President Donald Trump imposed 15% import duty rates on all goods imported from Japan into the United States, calling it ‘reciprocal tariffs’ which have now been taken into effect in the Asian nation. However, there has been discussion of a 12.5% tariff rate on Japanese goods, but the rates still prevail at 15%.
Toyota Results
According to the agency report, Toyota Motor Corp. witnessed a 37% fall in its net profit to $5.7 billion (841 billion yen) in the April-June quarter of 2025, compared to their nearly $9.26 billion (1.33 trillion yen) level in the same quarter of the year 2024. However, the sales for the quarter noted a 3% rise on a year-on-year basis to $82 billion (12 trillion yen).
The Japanese automaker manufactures its vehicles in Mexico and Canada, but the current status of the company’s exports from those manufacturing facilities is ‘unclear’ as both nations are beneficiaries of the US-Mexico-Canada Agreement, which was renegotiated during Trump’s first office in efforts to eliminate the trade barriers between the three nations, as per the news report.
According to the automaker’s earnings forecast, Toyota aims for a $18 billion (2.66 trillion yen) net profit for the full financial year ending March 2026, a slash from its previous level of $21 billion (3.1 trillion yen). The carmaker earned close to $33.44 billion (4.8 trillion yen) in the previous financial year, 2024-25.
Toyota’s tariff impact expectations
According to a separate Reuters report, the Japanese automaker Toyota is expecting a nearly $10 billion impact from Trump’s tariffs imposed on cars imported into the United States from the Asian nation. Analysts expect that Toyota is one of those companies around the world, set to witness the worst impact of the US tariff rates.
“It’s honestly very difficult for us to predict what will happen regarding the market environment,” Takanori Azuma, Toyota’s head of finance, told the media at the press conference on Thursday.
The finance head also said that the earnings estimate includes the effect that the suppliers are facing in the US while importing auto components from Japan. However, Azuma refused to say how much of the total was attributed to that.
The agency report also cited that among the retail sales, Toyota sold 2.4 million vehicles around the world, with its sales rising in Japan, North America and Europe when compared to the previous year, when the global retail sales stood at 2.2 million vehicles.
Toyota Motor Corp. shares closed 1.51% lower at ¥2,680 after Thursday’s stock market session on the Tokyo stock exchange, compared to ¥2,721 in the previous market close, according to the data collected from MarketWatch.
Read all stories by Anubhav Mukherjee
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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