Toyota’s revenue plunged 37% within the April-June quarter, the corporate mentioned Thursday, reducing its full 12 months earnings forecasts largely due to President Donald Trump’s tariffs.
The Japanese automaker mentioned it based mostly its report on the idea that Trump’s tariffs on exports from Japan, together with autos, could be 12.5% beginning this month. As of now they stand at 15%.
The world’s prime automaker additionally makes autos in Mexico and Canada. Toyota’s revenue within the final quarter totaled 841 billion yen, or $5.7 billion, down from 1.33 trillion yen in the identical interval the 12 months earlier than. Its quarterly gross sales rose 3%.
The standing of these exports is unclear since Mexico and Canada are beneficiaries of the U.S. Mexico Canada Settlement, renegotiated from a Nineties pact throughout Trump’s first time period in workplace, that eradicated most tariffs and commerce obstacles between the three nations.
Toyota Motor Corp.’s April-June revenue totaled 841 billion yen ($5.7 billion), down from 1.33 trillion yen in the identical interval of 2024. Quarterly gross sales rose 3% to 12 trillion yen ($82 billion).
Toyota mentioned the tariffs price its quarterly working revenue 450 billion yen ($3 billion). Value discount efforts and the destructive affect of an unfavorable alternate fee additionally harm its backside line.
The corporate, which makes the Camry sedan and Lexus luxurious fashions, forecast a 2.66 trillion yen ($18 billion) revenue for the total fiscal 12 months ending in March 2026, down from an earlier forecast for a 3.1 trillion yen ($21 billion) revenue. Toyota earned practically 4.8 trillion yen within the earlier fiscal 12 months.
“Regardless of a difficult exterior atmosphere, we’ve continued to make complete investments, in addition to enhancements comparable to elevated unit gross sales, price reductions and expanded worth chain income,” Toyota mentioned in a press release that outlined its efforts to attenuate the affect of the tariffs.
On the retail degree, Toyota bought 2.4 million autos globally, with gross sales rising in Japan, North America and Europe from the earlier 12 months, when world retail totaled 2.2 million autos.
Analysts say Toyota is probably going among the many worst hit by the tariffs amongst world corporations, even in contrast with different Japanese automakers.
Additionally Thursday, Toyota introduced it was constructing a brand new automobile meeting plant in Japan that it expects to have up and working within the early 2030s. It’s buying a website in Toyota metropolis, Aichi Prefecture, central Japan, the place the automaker is headquartered.
The fashions to be produced there are nonetheless undecided, however the plant will likely be a part of the corporate’s plan to keep up a manufacturing capability of three million autos in Japan, in accordance with Toyota. Billed as “a plant of the long run,” it’s going to additionally function new know-how tailor-made for what Toyota mentioned will likely be a various work pressure.