Toyota reports a 37% drop in profit, cuts its forecast due to 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 profit 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 status of those exports is unclear 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 profit 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 profit 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) profit for the full fiscal year ending in March 2026, down from an earlier forecast for a 3.1 trillion yen ($21 billion) profit. 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 improvements such as increased unit sales, cost reductions and expanded value chain profits,' 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 likely among the worst hit by the tariffs among global companies, even compared with other Japanese automakers.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
36 minutes ago
- Globe and Mail
Time to buy a shiny new car? Used vehicle prices are rising
Canadians shopping for a brand new car may be surprised that prices have dropped compared with a year ago, while those looking for used vehicles could pay thousands of dollars more than last summer, according to a new report. That said, prices are expected to jump for both vehicle types in the second half of the year, says the AutoTrader report released last week. Used vehicle prices jumped 3.6 per cent year-over-year in June, hovering at an average of $37,664, the report shows. That's compared with a 12-per-cent dip in the used car market throughout 2024. On the other hand, new vehicle prices dipped about 3.5 per cent year-over-year in June, to $64,445. Amazon wants to sell you cars online. Here's what it could mean for shoppers and auto sellers in Canada 'It's not what we expected to see,' said Baris Akyurek, vice-president of insights and intelligence at AutoTrader, about both used and new cars. 'Usually, [used car] prices start on the higher side, and come down throughout the year,' he added, while new car prices usually go up slightly, commensurate with inflation. But that trend reversed in March as a result of fears of American tariff igniting Canadian demand and exacerbating inventory shortages in used vehicles, though demand is catching up in the new car market as well. The inventory of used cars has slumped 16.8 per cent year-over-year because of surging demand and a persisting supply gap created during the COVID-19 pandemic. Between 2020 and 2023, approximately 1.5 million fewer new cars were sold in Canada owing to production disruptions, Mr. Akyurek said. The decline in new car sales meant that fewer vehicles trickled down into the used car supply, and that is now showing up as a lingering inventory shortage. In contrast, new car inventory was high at the start of 2025, with about 87 days of supply available, significantly above the industry norm of 60, Mr. Akyurek said. This surplus was the result of production finally catching up post-COVID, combined with slightly softer demand earlier in the winter. 'Then obviously Trump comes to power, and these tariff conversations come about,' he said. 'Everybody was talking about doom and gloom scenarios, like 'Oh, within a week, there won't be any cars produced … that scared consumers off.' In a February AutoTrader survey, 47 per cent of respondents said tariffs would impact their purchases, and 31 per cent said they would switch from new to used vehicles. With shoppers fearing higher prices for any cars, many rushed toward the used market, where prices were generally cheaper but inventory was already constrained. 'New vehicles prices are decreasing as older inventory is being sold first in expectation that newer inventory will be impacted by tariffs,' said Daniel Ross, senior manager of industry insights and residual value strategy at Canadian Black Book. Buying a used car is harder than it used to be and it's likely to get worse At the same time, demand for both types of vehicles has been steadily eroding the higher inventory cushion in the new vehicle market. New vehicle inventory has now fallen 12 per cent year-over-year in June, according to AutoTrader. Regionally, Ontario stands out as the only province where used car prices declined slightly in June. 'That might be related to the inventory composition, might be related to where the demand is and the cars that are available in Ontario,' Mr. Akyurek said. Used vehicle prices in Canada have already risen for four consecutive months and now sit above 2024 levels, setting the stage for continued price increases through the second half of 2025 if demand continues. AutoTrader data also showed that prices for both new and used electric vehicles have been falling across the board, with demand slumping as governments cut incentives for zero-emission vehicles. ZEV sales dipped 45 per cent in March and close to 30 per cent in April. For car shoppers, Mr. Ross said it's a better time to buy a new vehicle, as financing incentives are attractive and certain brands are eager to reduce inventory. Average new car interest rates now hover around 5.4 per cent, down from 6.6 per cent in June, 2024, Mr. Akyurek said. However, it's not a great time for a used car purchase, Mr. Ross said: 'Prices have already gone up, and we could see them start to fall in the last quarter of the year.'
CTV News
an hour ago
- CTV News
Innovation Farms testing grounds to include potatoes
CTV's Jamie Dowsett gets a closer look at Innovation Farms' new methods to improve potato crop yields. A Manitoba research farm expanded its testing grounds last month to include potatoes. Farm Credit Canada (FCC)'s Innovation Farms network, in partnership with agricultural technology accelerator EMILI, launched in 2022 to support the testing of new farming technologies. Located on a seed farm in Grosse Isle spanning over 5,500 acres, Innovation Farms has expanded to include an 8,500-acre farm in MacGregor—with approximately 3,000 acres dedicated to potato production. 'We're excited about it because, of course, potatoes are a significant crop here in Manitoba, high value as they get turned into French fries,' said Jacqueline Keena, managing director at EMILI. 'It's going to allow us to test all sorts of new technologies relevant to potato production, potato storage, which is an incredibly important and high-value function, … as well as irrigation optimization of those crops.' Tools being tested include a sensor-based storage monitoring technology developed by Cellar Insights and Agi3's CropSentry and Ukko Agro's ForeSite software, which collects data on growing conditions, per an FCC news release. Jacqueline Keena said the MacGregor farm will permit technology testing related to potato production and storage. Uploaded on Aug. 7, 2025. (Jamie Dowsett/CTV News Winnipeg) Caption: Jacqueline Keena said the MacGregor farm will permit technology testing related to potato production and storage. Uploaded on Aug. 7, 2025. (Jamie Dowsett/CTV News Winnipeg) The multi-year partnership between FCC, a federal Crown corporation, and EMILI intends to accelerate the adoption of on-farm technologies, making farms more efficient. 'There's all sorts of new technologies that we test out here: hardware, software, things that use AI, machine learning,' said Keena. 'It allows (farmers) to have a better understanding of their total farm operation and to a greater level of detail than they might otherwise be able to do.' 'Canadian producers can adopt technologies with confidence and de-risk that adoption by seeing how it works in real conditions,' said Chelsea Gray, Innovation Farms partnership manager at FCC. Gray said Innovation Farms also provides innovators the opportunity to receive feedback from farmers so they can ensure they're addressing the needs and challenges of producers. -With files from CTV's Jamie Dowsett
CTV News
an hour ago
- CTV News
New zero-emission bus arrives in Winnipeg
A new zero-emission bus is seen in Winnipeg on August 7, 2025. (Jamie Dowsett/CTV News Winnipeg) Winnipeg has become the first Canadian city to have a zero-emission articulated bus as part of its public transit fleet. On Thursday, the city showed off a new 60-foot bus that will be hitting the streets and picking up passengers next week. It is the first of 16 zero-emission buses the city has ordered. The cost is being shared by all three levels of government through a cost-sharing program that has since ended. Mayor Scott Gillingham said if the program returned, the city would consider ordering more of the buses. 'If the federal government would come out with another similar program, or the province of Manitoba comes out with another transit program specific to purchasing and helping the city to purchase zero-emission buses, then we would certainly look into that and continue that,' he said. The buses are built by New Flyer, and cost twice as much as regular diesel buses. The city has also ordered a combination of battery-electric buses and fuel-cell battery-electric buses to be used in its bus fleet.
