Toyota warns of earnings impact from tariffs

August 20, 2025

Toyota lowered its operating profit forecast for the fiscal year ending March 2026 to 3.2 trillion yen (US$21.7 billion), down from an earlier projection of 3.8 trillion yen.

Japan's Toyota Motor announced Thursday that it expects a nearly US$10 billion earnings impact from tariffs imposed by U.S. President Donald Trump on cars imported into the United States. It is the highest estimate to date by a company.

The world's largest automaker also cut its full-year operating profit forecast by 16%, reflecting the challenges global manufacturers face in dealing with rising costs stemming from U.S. tariffs on cars, parts, steel and aluminum.

"Honestly, it's very difficult for us to predict what will happen with respect to the market environment," Takanori Azuma, Toyota's chief financial officer, told a briefing, pledging to continue making cars for U.S. customers regardless of the tariff impact.

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