Toyota cuts profit forecast due to US tariffs
TOKYO : Japanese auto giant Toyota today cut its annual net profit forecast to ¥2.66 trillion (US$18.06 billion) owing to the impact of US tariffs.
'Due to the impact of US tariffs and other factors, actual results showed decreased operating income, and the forecast has been revised downward,' the company said in a statement.
Its shares fell 0.6% in Tokyo afternoon trade.
The Trump administration in April imposed a 25% levy on Japanese cars imported into the US, dealing a hefty blow to Japan and its crucial auto sector.
Although Tokyo and Washington announced a trade deal in July, lowering that rate to 15% and providing a degree of relief for the industry, it's not yet clear when it will take effect.
There is also confusion over whether the car tariff – as well as other 'reciprocal' levies – will be capped at 15%, or if these would come on top of those in place before Trump's trade blitz.
The auto industry had a pre-existing 2.5% tariff, meaning the levy currently stands at 27.5%.
Revenues in Toyota's first quarter from April to June were up 3.5%, but net income dropped by 36%.
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