One of the world’s largest automobile manufacturers, Toyota Motor Corp., projects a $1.2 billion drop in profits over anticipated losses from the trade war led by US President Donald Trump.
Ford Motor Company is anticipating a $1.5 billion annual damage, while General Motors Co. was compelled to reduce its full-year profit projection by as much as $5 billion due to duties on imported automobiles and auto parts. In just two months, Toyota's profit drops by $1.2 billion. The Japanese carmaker projected operating income of ¥3.8 trillion ($26.1 billion) for the fiscal year ending March 2026, which is significantly less than the ¥4.7 trillion analysts had predicted. However, it did not disclose a total for the entirety of 2025.
Even while Toyota now produces more than half of its cars domestically, it still imports important car models and parts, amounting to over 1.2 million vehicles annually. During his controversial Liberation Day speech in the Rose Garden on April 2, Trump specifically called out the Toyota City-based automaker, indicating that the White House has taken notice. He voiced his displeasure with Toyota's "one million foreign-made automobiles" that are sold in the United States.
The significant tariff hit is a result of the company's decision to limit production quantities at its 11 American factories and sticker prices at US dealers while bilateral trade talks between the US and Japan begin.
When such negotiations will end with a deal is uncertain; they began in February.
According to an estimate provided by an unnamed corporate official, Ryosei Akazawa, Japan's chief trade negotiator, stated on April 30 that one Japanese automaker is currently losing about $1 million every hour as a result of the tariffs. On Friday, a representative of the Japanese government declined to elaborate. However, based on 730 hours per month, Toyota is projecting a $1.2 billion hit, which is not too far from that rate of loss. A request for comment from Toyota representatives was likewise not answered.
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Some Japanese automakers have altered their worldwide manufacturing footprints in response to the challenging new trade environment. Honda Motor Company is moving production of its Civic hybrid from Japan to the US, while Nissan Motor Company has stopped US orders for SUVs manufactured in Mexico. Mazda Motor Company is halting exports of a certain model made at a joint venture facility with Toyota in Alabama to Canada due to retaliatory tariffs imposed on the US.