Toyota estimates tariffs will cost it A$15 billion this financial year
Toyota estimates tariffs in the US will cost it ¥1.4 trillion ($14.5 billion) in this financial year, which ends March 2026. That's up ¥1.2 trillion ($12.5 billion) from the previous financial year.
The US and Japan recently signed a deal, which will see tariffs on most Japanese imports, including cars and automotive components, reduced to 15 per cent, but it's unclear when that will come into force.
CarExpert can save you thousands on a new car. Click here to get a great deal.
Toyota also operates three plants in Ontario, Canada, which make the RAV4, as well as the Lexus RX and NX. The company also has two factories in Mexico which produce the Tacoma ute.
Thanks to an on-going trade war started by President Trump, cars imported from Canada and Mexico are subject to a 25 per cent tariff on components that don't meet the criteria set out in the United States Mexico Canada Agreement free-trade pact signed during President Trump's first term.
With Toyota now confident enough to guesstimate how much tariffs will cost, it has issued a prediction for its full year profit, which it believes will fall to 3.2 trillion ($33.2 billion). That's down ¥1.6 trillion ($16.6 billion) from the financial year that finished March 2025.
Toyota expects sales for the financial year to stay flat at 11.2 million vehicles, with Japan accounting for 1.5 million of those.
In its results for the April to June 2025 quarter, the company made a profit of ¥1.2 trillion, down 11 per cent from the same time last year.
Due to the tariff situation, North America posted a ¥21.1 billion loss, down from a ¥85 billion profit during the same period last year.
Toyota's North American operations isn't the only one suffering from tariff uncertainty.
Ford posted a US$36 million (A$55.9 million) loss in the April to June quarter despite record revenue numbers, and predicted it could lose around US$3 billion (A$4.66 billion) in tariff costs for the full year of 2025.
GM lost US$1.1 billion (A$1.68 billion) in the April to June quarter, blaming it all on the tariff situation.
Stellantis, the parent of Jeep, Ram, Dodge, Chrysler, Peugeot, Citroen, Fiat and others, recorded a €2.3 billion (A$4.1 billion) loss for the first half of the year, although most of that comes from restructuring and cancelling development programs.
The French-Italian-American automaker expects tariffs to cost it up to €1.5 billion (A$2.7 billion) for the full year.
tvMORE: Everything Toyota
Content originally sourced from: CarExpert.com.au
With the tariff situation in the US seemingly calming down a bit, Toyota has finally offered some insight on how much it will hurt the company's bottom line.
Toyota estimates tariffs in the US will cost it ¥1.4 trillion ($14.5 billion) in this financial year, which ends March 2026. That's up ¥1.2 trillion ($12.5 billion) from the previous financial year.
The US and Japan recently signed a deal, which will see tariffs on most Japanese imports, including cars and automotive components, reduced to 15 per cent, but it's unclear when that will come into force.
CarExpert can save you thousands on a new car. Click here to get a great deal.
Toyota also operates three plants in Ontario, Canada, which make the RAV4, as well as the Lexus RX and NX. The company also has two factories in Mexico which produce the Tacoma ute.
Thanks to an on-going trade war started by President Trump, cars imported from Canada and Mexico are subject to a 25 per cent tariff on components that don't meet the criteria set out in the United States Mexico Canada Agreement free-trade pact signed during President Trump's first term.
With Toyota now confident enough to guesstimate how much tariffs will cost, it has issued a prediction for its full year profit, which it believes will fall to 3.2 trillion ($33.2 billion). That's down ¥1.6 trillion ($16.6 billion) from the financial year that finished March 2025.
Toyota expects sales for the financial year to stay flat at 11.2 million vehicles, with Japan accounting for 1.5 million of those.
In its results for the April to June 2025 quarter, the company made a profit of ¥1.2 trillion, down 11 per cent from the same time last year.
Due to the tariff situation, North America posted a ¥21.1 billion loss, down from a ¥85 billion profit during the same period last year.
Toyota's North American operations isn't the only one suffering from tariff uncertainty.
Ford posted a US$36 million (A$55.9 million) loss in the April to June quarter despite record revenue numbers, and predicted it could lose around US$3 billion (A$4.66 billion) in tariff costs for the full year of 2025.
GM lost US$1.1 billion (A$1.68 billion) in the April to June quarter, blaming it all on the tariff situation.
Stellantis, the parent of Jeep, Ram, Dodge, Chrysler, Peugeot, Citroen, Fiat and others, recorded a €2.3 billion (A$4.1 billion) loss for the first half of the year, although most of that comes from restructuring and cancelling development programs.
The French-Italian-American automaker expects tariffs to cost it up to €1.5 billion (A$2.7 billion) for the full year.
tvMORE: Everything Toyota
Content originally sourced from: CarExpert.com.au
With the tariff situation in the US seemingly calming down a bit, Toyota has finally offered some insight on how much it will hurt the company's bottom line.
Toyota estimates tariffs in the US will cost it ¥1.4 trillion ($14.5 billion) in this financial year, which ends March 2026. That's up ¥1.2 trillion ($12.5 billion) from the previous financial year.
The US and Japan recently signed a deal, which will see tariffs on most Japanese imports, including cars and automotive components, reduced to 15 per cent, but it's unclear when that will come into force.
CarExpert can save you thousands on a new car. Click here to get a great deal.
Toyota also operates three plants in Ontario, Canada, which make the RAV4, as well as the Lexus RX and NX. The company also has two factories in Mexico which produce the Tacoma ute.
Thanks to an on-going trade war started by President Trump, cars imported from Canada and Mexico are subject to a 25 per cent tariff on components that don't meet the criteria set out in the United States Mexico Canada Agreement free-trade pact signed during President Trump's first term.
With Toyota now confident enough to guesstimate how much tariffs will cost, it has issued a prediction for its full year profit, which it believes will fall to 3.2 trillion ($33.2 billion). That's down ¥1.6 trillion ($16.6 billion) from the financial year that finished March 2025.
Toyota expects sales for the financial year to stay flat at 11.2 million vehicles, with Japan accounting for 1.5 million of those.
In its results for the April to June 2025 quarter, the company made a profit of ¥1.2 trillion, down 11 per cent from the same time last year.
Due to the tariff situation, North America posted a ¥21.1 billion loss, down from a ¥85 billion profit during the same period last year.
Toyota's North American operations isn't the only one suffering from tariff uncertainty.
Ford posted a US$36 million (A$55.9 million) loss in the April to June quarter despite record revenue numbers, and predicted it could lose around US$3 billion (A$4.66 billion) in tariff costs for the full year of 2025.
GM lost US$1.1 billion (A$1.68 billion) in the April to June quarter, blaming it all on the tariff situation.
Stellantis, the parent of Jeep, Ram, Dodge, Chrysler, Peugeot, Citroen, Fiat and others, recorded a €2.3 billion (A$4.1 billion) loss for the first half of the year, although most of that comes from restructuring and cancelling development programs.
The French-Italian-American automaker expects tariffs to cost it up to €1.5 billion (A$2.7 billion) for the full year.
tvMORE: Everything Toyota
Content originally sourced from: CarExpert.com.au
With the tariff situation in the US seemingly calming down a bit, Toyota has finally offered some insight on how much it will hurt the company's bottom line.
Toyota estimates tariffs in the US will cost it ¥1.4 trillion ($14.5 billion) in this financial year, which ends March 2026. That's up ¥1.2 trillion ($12.5 billion) from the previous financial year.
The US and Japan recently signed a deal, which will see tariffs on most Japanese imports, including cars and automotive components, reduced to 15 per cent, but it's unclear when that will come into force.
CarExpert can save you thousands on a new car. Click here to get a great deal.
Toyota also operates three plants in Ontario, Canada, which make the RAV4, as well as the Lexus RX and NX. The company also has two factories in Mexico which produce the Tacoma ute.
Thanks to an on-going trade war started by President Trump, cars imported from Canada and Mexico are subject to a 25 per cent tariff on components that don't meet the criteria set out in the United States Mexico Canada Agreement free-trade pact signed during President Trump's first term.
With Toyota now confident enough to guesstimate how much tariffs will cost, it has issued a prediction for its full year profit, which it believes will fall to 3.2 trillion ($33.2 billion). That's down ¥1.6 trillion ($16.6 billion) from the financial year that finished March 2025.
Toyota expects sales for the financial year to stay flat at 11.2 million vehicles, with Japan accounting for 1.5 million of those.
In its results for the April to June 2025 quarter, the company made a profit of ¥1.2 trillion, down 11 per cent from the same time last year.
Due to the tariff situation, North America posted a ¥21.1 billion loss, down from a ¥85 billion profit during the same period last year.
Toyota's North American operations isn't the only one suffering from tariff uncertainty.
Ford posted a US$36 million (A$55.9 million) loss in the April to June quarter despite record revenue numbers, and predicted it could lose around US$3 billion (A$4.66 billion) in tariff costs for the full year of 2025.
GM lost US$1.1 billion (A$1.68 billion) in the April to June quarter, blaming it all on the tariff situation.
Stellantis, the parent of Jeep, Ram, Dodge, Chrysler, Peugeot, Citroen, Fiat and others, recorded a €2.3 billion (A$4.1 billion) loss for the first half of the year, although most of that comes from restructuring and cancelling development programs.
The French-Italian-American automaker expects tariffs to cost it up to €1.5 billion (A$2.7 billion) for the full year.
tvMORE: Everything Toyota
Content originally sourced from: CarExpert.com.au
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Wall Street has shrugged off the slowdown, but that is because traders are betting on the 'Fed put' – Vickie Chang, from Goldman Sachs, says markets have priced in both a 'negative US growth shock' and a 'doveish policy shock' at the same time. The two more or less offset each other. In other words, the Fed will ensure that the Schiller price-to-earnings ratio on Wall Street remains near the peak of the dotcom bubble at over 38, and junk bond spreads remain as compressed as they were at the peak of the Lehman credit bubble. Uncle Jerome will keep investors fat and happy. Loading The Fed will undoubtedly cut rates, but it is an invidious position. The next shocker may well be the core inflation figures out next week. The delayed effects of the tariffs are about to feed through with malicious and unstoppable force. Welcome to 1970s Nixonian stagflation. Donald Trump will doubtless declare that the index has been manipulated by Marxist fifth columnists. Good luck with that. The US is unable to substitute 90 per cent of its current imports with local production. Trump's trade taxes will be paid by US consumers via higher prices, and by US companies with plants abroad or reliance on foreign inputs via lower profit margins. Caterpillar has already warned that the Trump levy will cost it up to $US1.5 billion ($2.3 billion) a year. Brewer Molson Coors expects earnings to fall by 7 to 10 per cent because Trump's 50 per cent tariffs on aluminium have pushed metal can costs through the roof. We know from early warning signals – both the ISM's service price paid index and S&P Global's composite PMI output prices – that price impulse is filtering through with the usual multi-month lag, and that headline inflation will approach an annualised rate near 5 per cent over the next three months. Durable goods prices are already rising at the fastest rate since the early 1990s. The Yale Budget Lab expects food and apparel prices to rise by almost 40 per cent. The Fed will undoubtedly cut rates, but it is an invidious position. Britain and Europe are in a different position. They are absorbing the brunt of China's galactic overcapacity, and absorbing some of its deflation too as a wave of cheap Chinese exports are diverted from the US and into their markets. They are not committing further economic self-harm by raising inflationary trade taxes themselves. I can understand the reasons for the hawkish tone of the Bank of England's rate cut on Thursday, but lingering worries of UK inflation may soon be washed away by larger global forces. 'The Bank will be compelled to cut faster in 2026,' said Mathieu Savary, of BCA Research, who thinks that deflation is the greater danger stalking Europe. The eurozone's rebound has stalled. The growth spurt earlier this year was an illusion of 'tariff front-running'. German industrial output fell 1.9 per cent in June. It is down 4 per cent from a year ago, and 10 per cent below its pre-pandemic level. 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It risks happening again if the European Central Bank continues to sit on its hands as the Wicksellian 'natural' rate of interest plummets. Trump's tariffs on Europe will now ratchet up to 15 per cent. The trade shock amounts to 25 per cent this year when you add in euro appreciation against the dollar, or a de facto 60 per cent shock on metal products. Trump has yet to drop his full pharma bomb. He is talking of 100 per cent tariffs on semiconductors. The market narrative that the worst is over and that stability will come will surely become a collectors' item for historians and students of the capitalist psyche. Nothing is ever stable with Trump. Loading He has just inflicted the biggest trade shock in peacetime since the origins of the modern economy in the 17th Century. He has killed Pax Americana stone dead, destroyed NATO credibility, carpet-bombed the West and smashed the rules-based order to smithereens on every level. Yet asset markets remain insouciantly priced for perfection. What can possibly go wrong?
