Toyota’s April–June profit dropped 37% to ¥841 billion ($5.7 billion), down from ¥1.33 trillion a year earlier.
The company cited Trump’s 12.5% auto tariffs on Japanese exports as the primary cause.
Tariffs are now 15%, exceeding Toyota’s forecast and hitting its bottom line harder than expected.
Toyota slashed its full-year profit forecast to ¥2.66 trillion ($18 billion), down from ¥3.1 trillion.
That’s a sharp drop from last year’s record ¥4.8 trillion profit.
Tariffs cost Toyota ¥450 billion ($3 billion) in quarterly operating profit.
The automaker also faced unfavorable exchange rates, compounding the damage.
Despite the profit hit, global sales rose 3% to ¥12 trillion ($82 billion).
Toyota sold 2.4 million vehicles, up from 2.2 million last year, with growth in Japan, North America, and Europe.
Toyota emphasized cost-cutting, value chain expansion, and investment continuity to weather the storm.
Vehicles made in Mexico and Canada may be shielded under the USMCA trade pact, but clarity is lacking.
(source apnews.com)
—Agencies
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