On Thursday, the Japanese giant Toyota expects a 35 % net net profit on a net year on the current fiscal year, citing the definitions of Donald Trump’s vehicle from other factors.
Automobile makers were among the most difficult US President’s multi -side attack on free trade.
In addition to a 25 % tariff that was already placed on the final imported cars, the Trump administration imposed a similar duty on Saturday, including auto parts, including engines and transportation.
For the fiscal year 2025-26 that started in April, Toyota now expects a net profit of 3.1 trillion yen ($ 21.6 billion).
“The estimated impact of US definitions in April and May 2025 was initially developed,” the world’s best -selling auto industry said in a statement.
The company recorded a net profit of about 4.8 trillion yen in 12 months until March 31, a decrease of 3.6 % on an annual basis, but defeated its expectations issued in February 4.5 trillion yen.
As of this month, the definitions were estimated to affect operating profit 2025-2026 up to 180 billion yen.
When asked about the long -term impact on the definitions, the Toyota President and CEO Koji Sato told reporters that the situation “is difficult to predict now.”
“The American definitions are currently being negotiated between governments, and the details are still liquid,” he said.
Sato said that Toyota exports 500,000 cars annually to the United States from Japan.
“So in the short term, we modify the charges … while from the middle of the mid -term side, we will follow the local development of products that are suitable for local customers.”
But the company will aim to maintain its production in Japan, which includes three million cars annually, “from the point of view of protecting supply chains and earning foreign currencies by export.”
“Standard” expectations
Toyota shares were traded by 1.3 % after announcing the profits.
Tatsuo Yoshida, an analyst Auto Auto analyst at Bloomberg Intelligence Tatsuo Yoshida, told Agence France Book.
He said before Thursday’s results: “The entire country, including suppliers, will be left confused if Toyota does not issue a kind of measurement,” on the impact of definitions, before Thursday’s results.
Cars formed about 28 % of Japanese exports to the United States last year.
Trump moved to alleviate his definition details on car manufacturers at the end of last month – in designing an executive order to reduce the impact of the interrelated fees on companies.
The President also issued a declaration granting the industry for a period of two years to transfer supply chains to the United States.
Toyota sold 10.8 million cars worldwide in 2024, adhering to its crown as the most selling automotive company in the world.
“The auto companies are doing what they can try to transfer production to the United States, although there are no huge changes (immediately) as it takes time to change production,” Takaki Nakanyshi of the Nakanyshi Research Institute at the Nakanishi Research Institute told AFP.
Last month, Trump struck a wide difference between Japanese car exports to the United States and those who are going in the other direction.
Toyota is the second automobile manufacturer in the United States, where more than 2.3 million cars have turned last year, while General Motors, the leader of the industry in the United States, sold only 587 Chevrolets and 449 Cadillac in Japan.
Experts say the narrow roads in Japan – narrow for many American models – and the reputation of Japanese cars of quality and fuel efficiency are some reasons for this.
“They do not take our cars, but we take millions!” Trump said in April, accusing Japan of treating its ally “very bad in trade.”
This story was originally shown on Fortune.com
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