Toyota Cuts Profit Forecast After ¥1.4 T ($9.5 Bn) Tariff Hit
Toyota’s tariff impact in 2025 has devastated the world’s largest automaker, forcing a 16% cut to annual operating profit forecasts amid a staggering ¥1.4 trillion ($9.5 billion) hit from US import duties. The Japanese giant now expects ¥3.2 trillion in operating income for fiscal 2026, down from ¥3.8 trillion, as auto industry tariff costs mount despite record sales. Toyota Tariff Impact 2025: How Japan Trade Regulations And Us Enforcement Disrupt Auto Industry Toyota manufacturing assembly line – Source: Bloomberg Massive Financial Hit Despite Record Sales Despite achieving record global sales of 5.5 million vehicles in the first half of 2025 – a 7.4% increase – Toyota tariff impact 2025 absorbed ¥450 billion in costs during the April-June quarter alone. The company’s operating income fell 11% to ¥1.17 trillion, though this still beat analyst expectations of ¥890 billion. Also Read: Toyota Announces $88M US investment Amid Tariff War Toyota stated: ...