Toyota slashes outlook on tariff concerns as profit plunges 37%
Key Takeaways
Toyota Motor Corp.’s April-June profit totaled 841 billion yen ($5.7 billion), down from 1.33 trillion yen in the same period of 2024.
Article Overview
Quick insights and key information
3 min read
Estimated completion
investment
Article classification
August 7, 2025
04:27 PM
Fortune
Original publisher
Retail·earningsToyota slashes outlook on tariff concerns as fit plunges 37%By Yuri KageyamaBy The Associated PressBy Yuri KageyamaBy The Associated Press Toyota had a tough tariff quarter.Getty ImagesToyota’s fit plunged 37% in the April-June quarter, the company said Thursday, cutting its full year earnings forecasts largely because of President Donald Trump’s tariffs
The Japanese automaker said it based its report on the assumption that Trump’s tariffs on exports from Japan, including autos, would be 12.5% starting this month
As of now they stand at 15%
The world’s top automaker also makes vehicles in Mexico and Canada
Toyota’s fit in the last quarter totaled 841 billion yen, or $5.7 billion, down from 1.33 trillion yen in the same period the year before
Its quarterly sales rose 3%
The of those exports is un since Mexico and Canada are beneficiaries of the U.S
Mexico Canada Agreement, renegotiated from a 1990s pact during Trump’s first term in office, that eliminated most tariffs and trade barriers between the three countries
Toyota Motor Corp.’s April-June fit totaled 841 billion yen ($5.7 billion), down from 1.33 trillion yen in the same period of 2024
Quarterly sales rose 3% to 12 trillion yen ($82 billion)
Toyota said the tariffs cost its quarterly operating fit 450 billion yen ($3 billion)
Cost reduction efforts and the negative impact of an unfavorable exchange rate also hurt its bottom line
The company, which makes the Camry sedan and Lexus luxury models, forecast a 2.66 trillion yen ($18 billion) fit for the full fiscal year ending in March 2026, down from an earlier forecast for a 3.1 trillion yen ($21 billion) fit
Toyota earned nearly 4.8 trillion yen in the previous fiscal year. “Despite a challenging external environment, we have continued to make comprehensive investments, as well as imvements such as increased unit sales, cost reductions and expanded value chain fits,” Toyota said in a statement that outlined its efforts to minimize the impact of the tariffs
At the retail level, Toyota sold 2.4 million vehicles globally, with sales growing in Japan, North America and Europe from the previous year, when global retail totaled 2.2 million vehicles
Analysts say Toyota is ly among the worst hit by the tariffs among global companies, even compared with other Japanese automakers
Also Thursday, Toyota announced it was building a new car assembly plant in Japan that it expects to have up and running in the early 2030s
It is acquiring a site in Toyota city, Aichi Prefecture, central Japan, where the automaker is headquartered
The models to be duced there are still undecided, but the plant will be part of the company’s plan to maintain a duction capacity of 3 million vehicles in Japan, according to Toyota
Billed as “a plant of the future,” it will also feature new nology tailored for what Toyota said will be a diverse work force
Introducing the 2025 Fortune 500, the definitive ranking of the biggest companies in America
Explore this year's list.
Related Articles
More insights from FinancialBooklet