TOKYO (AP) \u2014 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\u2019s tariffs.<\/p>\n
The Japanese automaker said it based its report on the assumption that Trump\u2019s tariffs on exports from Japan, including autos, would be 12.5% starting this month. As of now they stand at 15%.<\/p>\n
The world\u2019s top automaker also makes vehicles in Mexico and Canada. Toyota\u2019s 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%.<\/p>\n
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.<\/p>\n
Toyota Motor Corp.\u2019s 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).<\/p>\n
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.<\/p>\n
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.<\/p>\n
\u201cDespite 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,\u201d Toyota said in a statement that outlined its efforts to minimize the impact of the tariffs.<\/p>\n
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.<\/p>\n
Analysts say Toyota is likely among the worst hit by the tariffs among global companies, even compared with other Japanese automakers.<\/p>\n
Also Thursday, Toyota announced it was building a new car assembly plant in Japan that it expects to have up and running in the early 2030s. It is acquiring a site in Toyota city, Aichi Prefecture, central Japan, where the automaker is headquartered.<\/p>\n
The models to be produced there are still undecided, but the plant will be part of the company’s plan to maintain a production capacity of 3 million vehicles in Japan, according to Toyota. Billed as \u201ca plant of the future,\u201d it will also feature new technology tailored for what Toyota said will be a diverse work force.<\/p>\n","protected":false},"excerpt":{"rendered":"TOKYO (AP) \u2014 Toyota’s profit plunged 37% in the April-June quarter, the company said Thursday, cutting its full…\n","protected":false},"author":2,"featured_media":52519,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,49,48,2454,35645,35646,862,926],"class_list":["post-52518","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ca","tag-canada","tag-japan","tag-japanese-automaker","tag-operating-profit","tag-president-donald-trump","tag-toyota"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/52518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=52518"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/52518\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/52519"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=52518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=52518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=52518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}