Toyota Estimates At Least $1.25 Billion Tariff Impact In April And May: Report

While President Donald Trump was touting his caller waste and acquisition woody pinch nan U.K. and sending representatives to Switzerland to statesman talks pinch China, Japan’s largest automaker, Toyota, revealed that nan tariffs he imposed will costs it astatine slightest $1.25 cardinal successful April and May. 

The Wall Street Journal reported that done nan extremity of March, Toyota made 3.2 cardinal vehicles successful Japan and exported astir 542,000 to nan United States.

How overmuch is Toyota paying erstwhile it comes to tariffs?

The Trump management group a 25% tariff past period connected foreign-made cars coming into nan country. Despite that, Toyota Chief Financial Officer Yoichi Miyazaki said nan institution will not raise prices successful nan United States.

Toyota was nan world’s largest carmaker successful 2024, trading 10.8 cardinal vehicles. In bid to waste cars successful nan U.S., Toyota and different Japanese automakers make cars successful Japan, arsenic good arsenic Mexico, and export them to nan United States. They besides produced immoderate vehicles astatine American plants and mightiness look higher labour costs if they determine to grow successful nan U.S.  

What is Toyota saying astir nan future?

Toyota said profits for nan first 3 months of 2025 dropped by 33% compared to 2024. 

Toyota Chief Executive Officer Koji Sato said that tariffs are fluid and make predicting nan early difficult, according to nan Wall Street Journal.

Sato said Toyota will proceed to create and manufacture cars based connected wherever its customers are located. 

He talked astir nan value of Toyota maintaining its position successful Japan arsenic well.

“It’s captious to protect home production,” Sato said.

The Journal noted that Toyota’s banal value is down 15% this twelvemonth owed to concerns astir nan caller U.S. tariffs. Higher costs of materials are besides expected to negatively impact profits. 

“Whether these tariffs are imperishable aliases not, and what will hap is not thing we tin decide,” Sato said.

Some economists and analysts judge nan tariffs connected vehicles will lead to rising prices successful this state for car buyers. In addition, a simplification successful user assurance and sentiment could besides impact nan car manufacture going forward.