Toyota cites tariffs as it forecasts 35% drop in 2025-26 net profit
- Toyota forecast a 35 percent drop in net profit for the 2025-26 financial year due to tariffs and other factors.
- The forecast reflects tariffs imposed by President Trump, including a 25 percent duty on imported vehicles and auto parts.
- Toyota logged a net profit near 4.8 trillion yen in the past year but expects impacts on operating profit estimated at 180 billion yen this fiscal year.
- Trump's executive order limits overlapping levies to one 25 percent tariff, with a two-year grace period to encourage supply chain relocation to the US.
- The profit decline signals challenges from tariffs and higher costs, while Toyota remains the world’s top-selling automaker with 10.8 million vehicles sold in 2024.
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Toyota predicts a 35 per cent collapse of its profit, due to higher U.S. tariffs
The Trump administration has been applying 25% surcharges since the beginning of April on cars imported into the United States. The world's leading automaker anticipates a collapse of about 35% of its net profit in 2025-2026.
·Paris, France
Read Full ArticleToyota Expects U.S. Tariffs, Higher Material Costs to Dent Profit
Net profit fell 33% from a year earlier to $4.62 billion for the three months ended March Toyota7203-1.27%decrease; red down pointing triangle Motor projected lower annual profit after reporting a drop in fourth-quarter earnings, expecting U.S. tariffs and higher...
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