Toyota faces the biggest success of Trump’s rates among automobile companies

Toyota Motor Corp is the largest manufacturer of vehicles in the world, and also the largest loser in the car industry when it comes to losses projected to the United States President Donald Trump.

Features about imported cars and forced car pieces General engines Co. To reduce your benefit throughout the year direction up to $ 5 billion while Ford engine Co. is based on $ 1.5 billion Annual hit. Toyota sees a $ 1.2 billion profit drop in just two months. Although Japanese car maker did not provide an account for all 2025, he did project Operational income of 3.8 trillion ¥ ($ 26.1 billion) for fiscal exercise ending in March 2026, well below 4.7 trillion ¥ planned by analysts.

While Toyota has increased local production in the United States to more than half of the country’s sales, it is still based on the imports of key parts and models, with an amount of 1.2 million cars a year. The White House has realized, with Trump calling his name to Toyota City Automaker during his contentious speech day of release at Rose Garden on April 2. He complained about Toyota’s “million foreign cars” sold in the United States.

The enormous rate success reflects the company’s decision to maintain the line of prices for stickers to North -American production distributors and volumes in its 11 North -American factories in the midst of the start of bilateral trade negotiations between the United States and Japan. These conversations began in February and is unclear when they will conclude with an agreement.

“When it comes to rates, the details are still incredibly fluid,” said Koji Sato, Toyota’s CEO, Koji Sato, after launching the last financial results. “It is difficult to measure or measure the impact.”

Japan’s main commercial negotiator Ryosei Akazawa said on April 30, a namesome Japanese automobile manufacturer is losing around $ 1 million per hour of the rates, quoting a calculation made by an unidentified corporate executive. A Japanese government official on Friday refused to provide more details. But this loss rate is not too far from the mark of $ 1.2 billion toyota, which is projected according to 730 hours a month. Toyota’s representatives also did not respond to a comment request.

Akazawa has expressed his hope that an agreement could be reached in June with the next round of negotiations that would take place in late May.

Most imported vehicles were subjected to 25% of North -American service on April 3, while most cars are subject to this tax from May 3.LargerFor the five largest manufacturers in Japan, even a moderate increase in rates will have a reduced impact on their bottom lines.

Read -Ne More:Trump’s rates already hit some Japanese companies, according to surveys

Trump administration came to their First trade agreement May 8 with the United Kingdom. But the United States had a $ 11.9 billion goods trade surplus With the United Kingdom last year while having $ 68.5 billion deficit With Japan. This may make it difficult to security of a agreement without significant concessions on the one hand.

“The obstacle is high for Japan to reduce automobile rates” to exports to the United States, said Hiroshi Namioka, no T&D strategist Management Co. “At the same time, the car industry is too important for Japan to simply go with what the United States wants.”

Some Japanese automobile manufacturers have responded to new commercial environment, making changes to their world -class footprints. Nissan Co. Motor. stopped the SUV orders built in Mexico while Honda Co. Motor. It is changing the production of the hybrid version of its civic from Japan to the United States. Due to retaliation rates against US, Mazda engine Co. It is stopping exports to Canada of a model made of a Alabama factory that is a joint company with Toyota.

Japan Production PLUDGE

Toyota has already invested a lot to build his north -American operations, including spending $ 13.9 billion on aNew battery plantin North Carolina. But he also agrees to maintain his extensive domestic base. President Akio Toyoda has repeated itembarrassingContinue to do at least three million vehicles a year in Japan. Last year the companybuilt3.1 million cars in their country of origin, about a third of their total world production.

Globally, Toyota sold 10.8 million cars by 2024, and the United States represents a little less than a quarter. While half were locally and another 30% came from Canada and Mexico neighbors, about 281,000 vehicles were imported from Japan. Includes popular models such as 4runner medium -sized SUV, Prius Hybrid and several luxury Lexus vehicles.

The company’s best vendors in the United States (the Rav4 hybrid crossover and the Corolla Compact Berlina) meet in the Kentucky and Mississippi factories. But the RAV4 only gases are imported from Canada and Plug-in hybrid comes from Japan. Corolla variants such as sports GR, Practical Hatchback and gas hybrid also carry labels made in Japanese.

This exhibition puts Toyota at the Trump administration cross games and means that the car maker has a lot of result in the result of the United States-Japo trade negotiations.

The vehicle maker has again promoted the critic of the White House, emphasizing through a spokesman who agrees to spend almost $ 21 billion in the United States since 2020. This is almost twice thePondge he madeDuring Trump’s first administration, after the same wayBypassby the President of the United States. Toyota also said that it has increased direct manufacturing in the United States to 31,000 workers, up to 25,000 in 2016.

One of the problems that faces: a severe restriction on the flexibility of existing manufacturing facilities in the United States, which could affect their ability to move plant vehicles abroad. Toyota’sfactory in GeorgetownKentucky, the oldest and largest of its US vehicle assembly operations, has no models for new models. It worked at almost 100% of its maximum capacity at the end of April, according to a U.S. representative for the company.

This story originally presented to Fortune.com

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