Toyota provides for a 35% drop in profits as Trump’s automatic rates start to bite

On Thursday, Thursday, Toyota’s forecast, the Japanese automatic giant, a net year -on -year drop in the current year for the current financial year, citing Donald Trump’s vehicle rates among other factors.

Manufacturers’ manufacturers have been affected by the multi-punic assault on President of the President of the United States.

In addition to a 25% rate already placed on finished imported cars, the Trump administration imposed a similar duty on Saturday to car parts that include engines and transmissions.

For the 2025-26 exercise, which started in April, Toyota now provides for a net profit of 3.1 trillion yen ($ 21.6 billion).

“The estimated impact of US rates in April and May 2025 has been temporarily taken into account,” said the world’s best -selling car maker in a statement.

The company registered a net profit of about 4.8 trillion yen in the 12 months until March 31, 3.6% year -on -year, but exceeded its forecast issued in February 4.5 trillion yen.

From this month he estimated that the rates would affect the operating profit 2025-2026 up to 180 billion yen.

Asked about the longer -term impact of the rates, Toyota’s CEO and CEO, Koji Sato, told journalists that the situation was “difficult to predict right now.”

“U.S. rates are currently being negotiated between governments and details are still fluid,” he said.

Toyota exports 500,000 vehicles a year in the United States from Japan, said Sato.

“So in the short term we are adjusting the shipments … while in the long term in the long term, we will pursue the local development of products that adapt to local customers.”

But the company aims to maintain its production in Japan of three million vehicles a year, said: “From the point of view of protecting supply chains and gaining foreign coins exporting.”

“Benchmark” forecast

Toyota shares traded 1.3% after the results announcement.

The “influence and position” of the manufacturer means that his benefits are closely seen in Japan, he told the AFP the analyst Tatsuo Yoshida, the analyst Tatsuo Yoshida, by Bloomberg Intelligence.

“The whole country, including suppliers, would be lost if Toyota does not emit any reference” on the impact of rates, he said before Thursday’s results.

The cars made up about 28% of Japanese exports to the United States last year.

Trump moved to soften the details of his rates to automobile manufacturers at the end of last month, signing an executive order to limit the impact of overlapping rates on companies.

The President also published a proclamation that provides the industry with a two -year grace period to move supply chains to the United States.

Toyota sold 10.8 million vehicles worldwide in 2024, keeping its crown as a best -selling car maker in the world.

“Automobile manufacturers are doing what they can to try to transfer production to the United States, although there are no huge changes (immediately), as changing production takes time,” he told the AFP Takaki Nakanishi of the Nakanessi automobile firm.

Trump last month there was a wide difference between the exports of Japanese vehicles to the United States and those who go on the other way.

Toyota is the second automobile sale in the United States, where it changed more than 2.3 million vehicles last year, while the leader of the U.S. industry General Motors sold only 587 chevrolets and 449 Cadillacs in Japan.

Experts say that the narrow roads of Japan, very close to many North -American models, and the reputation of Japanese cars due to the quality and efficiency of fuel are some reasons for it.

“They don’t take our cars, but we take millions of theirs!” Trump said in April, accusing Japan of treating his ally “very badly in trade”.

This story originally presented to Fortune.com

Source link