Toyota Q1 Net Profit Plunges 37% After Trump Tariff Hit
The automaker revised its net profit forecast downward by 14% to 2.6 trillion yen, citing the new 25% duty imposed on Japanese car imports in April by U.S. President Donald Trump.
Previously, Toyota had only factored in the impact of tariffs for April and May—estimated at 180 billion yen. The company's net profit for the April–June quarter fell 36.9% year-on-year to ¥841 billion, reflecting both the stronger yen and the increased U.S. tariff rate.
'The [U.S. tariff] has risen to 15% from the previous 2.5%, which obviously has a significant impact,' said Takanori Azuma, Toyota's chief accounting officer. 'And it is a thing we are not able to control. The major challenge is to ensure that our North America business generates solid profits. The result [of a trade deal] remains tough.'
Azuma added that Toyota is exploring countermeasures. 'If there is excess production capacity in the U.S., we will make use of it. … We want to refine our operations by considering every possible scenario.'
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Also read: Kremlin Confirms Trump-Putin Meeting 'In Coming Days', Possibly In UAE
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