Cost of Trump tariffs adding up for some U.S. businesses, consumers
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Globe and Mail
37 minutes ago
- Globe and Mail
Toyota reports a 37% drop in profit, cuts its forecast due to Trump's tariffs
TOKYO (AP) — Toyota's profit plunged 37% in the April-June quarter, the company said Thursday, cutting its full year earnings forecasts largely because of President Donald 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.
Winnipeg Free Press
an hour ago
- Winnipeg Free Press
Asian shares mostly climb after a rally for Apple led Wall Street higher
MANILA, Philippines (AP) — Asian shares mostly advanced and financial markets appeared to show scant if any reaction to higher tariffs on exports to the United States that took effect early Thursday. Japan's benchmark Nikkei 225 added 0.6% to 41,025.76. Hong Kong's Hang Seng climbed 0.6% to 25,057.84 and the Shanghai Composite added 0.1% to 3,637.96. China reported that its exports picked up in July, helped by a flurry of shipments by businesses taking advantage of a pause in U.S. President Donald Trump's tariff war with Beijing. South Korea's Kospi rose 0.6% to 3,217.67 while the S&P/ASX 200 in Australia shed 0.2% to 8,828.70. India's Sensex gave up 0.6% after Trump ordered tariffs on imports from the world's most populous nation to rise to 50%, citing its crude oil imports from Russia. Trump also declared 100% tariffs on computer chips with an exemption for U.S. investments. Apple's shares rose 5.1% on Wednesday ahead of a White House event where it announced an increase to its U.S. investments of an additional $100 billion over the next four years. Mizuho Bank, in a commentary, said the Trump's exemption from 100% tariffs on semiconductors for those with investments in U.S. production means trade partners may be able to use investments as a bargaining chip. Taiwan's Taiex jumped 2.4% as shares in market heavyweight Taiwan Semiconductor Manufacturing Corp. surged 4.9%. TSMC is the world's largest contract maker of computer chips and it has been ramping up its investments in U.S. factory capacity, helping to alleviate the impact from higher tariffs. South Korean chipmakers also saw strong gains, with Samsung Electronics jumping 2.1% after the government said its products would also be subject to the exemption. On Wednesday, a rally for Apple led Wall Street higher, with U.S. stocks reclaiming more of their sharp losses from last week. The S&P 500 rose 0.7% to 6,345.06. The Dow Jones Industrial Average added 0.2% to 44,193.12, and the Nasdaq composite climbed 1.2% to 21,169.42. Apple alone accounted for more than a third of the S&P 500's gain. Trading elsewhere on Wall Street was mixed following a jumble of profit reports. McDonald's and Shopify rose following their latest updates, while Super Micro Computer tumbled after its earnings and revenue came in below analysts' expectations. The Walt Disney Co. fell after its earnings beat forecasts but its revenue fell short Monday Mornings The latest local business news and a lookahead to the coming week. Worries are still high that Trump's tariffs may be hurting the economy, but hopes for coming cuts to interest rates by the Federal Reserve and a parade of stronger-than-expected profit reports from U.S. companies have helped steady the market. In other dealings early Thursday, benchmark U.S. crude climbed 44 cents to $64.79 a barrel. Brent crude, the international standard, added 42 cents to $67.31 a barrel. The U.S. dollar slipped to 147.33 Japanese yen from 147.36 yen. The euro cost $1.1670, up from $1.1661. __ AP Business writers Stan Choe and Matt Ott contributed.
Winnipeg Free Press
an hour ago
- Winnipeg Free Press
The Latest: Trump's tariffs go into effect
The U.S. began officially levying higher taxes on imports from dozens of countries Thursday, four months after President Donald Trump first announced plans to impose tariffs on most of the world while seeking new trade agreements across the board. The White House said that starting just after midnight goods from more than 60 countries and the European Union would face tariff rates of 10% or higher. Products from the European Union, Japan and South Korea will be taxed at 15%, while imports from Taiwan, Vietnam and Bangladesh will be taxed at 20%. Trump also expects places such as the EU, Japan and South Korea to invest hundreds of billions of dollars in the U.S. The Trump White House is confident that the onset of his broad tariffs will provide clarity about the path of the world's largest economy. Now that companies understand the direction the U.S. is headed, the administration believes they can ramp up new investments and jump-start hiring in ways that can rebalance the U.S. economy as a manufacturing power. But so far, economic data has shown a U.S. economy that began flagging after Trump's initial rollout of tariffs in April. Here's the latest: Modi vows to defend farmers' interests Prime Minister Narendra Modi on Thursday said India will never compromise the interests of farmers. 'For us, the interests of farmers are a top priority. I know I will have to personally pay a heavy price for it, but I am ready,' Modi said at a conference in what was seen as a message to the U.S. administration, which has been seeking greater access to India's agriculture and dairy sectors. India and the U.S. have had five rounds of negotiations on a bilateral trade agreement, but haven't been able to clinch one so far. Monday Mornings The latest local business news and a lookahead to the coming week. On Wednesday, Trump signed an executive order to place an additional 25% tariff on India for its purchases of Russian oil. The order would go into effect in 21 days and bring the combined tariffs imposed on India to 50%. Sony profits are up Japanese entertainment and electronics company Sony said Thursday its profit surged 23% in the last quarter from the year before, as damage from U.S. President Donald Trump's tariffs was less than it had expected. Sony raised its forecast for its profit in the full fiscal year until March 2026 to 970 billion yen ($6.6 billion), from an earlier forecast of 930 billion yen ($6.3 billion). The revised projection is still lower than what it earned in the previous fiscal year at 1 trillion yen. Sony now estimates the impact of the additional U.S. tariffs on its operating income at 70 billion yen ($476 million), much better than the initial estimate of 100 billion yen ($680 million).
