Toyota forecasts a 35% drop in profits as Trump's auto tariffs begin to bite

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Toyota forecasts a 35% drop in profits as Trump's auto tariffs begin to bite

//business-finance.news-articles.net/content/202 .. ofits-as-trump-s-auto-tariffs-begin-to-bite.html

Published in Business and Finance on Thursday, May 8th 2025 at 4:00 GMT by Fortune

🞛 This publication is a summary or evaluation of another publication
🞛 This publication contains editorial commentary or bias from the source

Toyota's profit forecasts are closely watched in Japan, due to the importance of the country's auto industry.

2025-05-08 312 x 156 / 47477 Bytes

Toyota has forecasted a significant drop in profits for the fiscal year ending March 2026, attributing the decline to potential auto tariffs that could be imposed by the Trump administration if he wins the upcoming U.S. presidential election. The company expects its operating income to fall by 20% to ¥2.5 trillion ($16.5 billion), down from ¥3.1 trillion ($20.5 billion) in the previous fiscal year. Toyota's concerns stem from Trump's previous threats to impose a 10% tariff on all imported vehicles, which would severely impact the company's sales in the U.S., its largest market outside Japan. In response, Toyota is considering increasing local production in the U.S. and exploring other strategies to mitigate the potential impact of the tariffs.

Read the Full Fortune Article at:
[ https://fortune.com/asia/2025/05/08/toyota-forecasts-drop-profits-trump-auto-tariffs/ ]