Toyota Motor Corp is the world’s largest car company – as well as the largest loser in the automotive industry when it comes to the expected losses of the trade war of US President Donald Trump.
Duties on imported cars and forced car parts General Motors A company to reduce its entire public profit guidance By up to $ 5 billion while Ford Motor A company is preparing for $ 1.5 billion Annual blow. Toyota sees a decrease in profit of $ 1.2 billion in just two months. While the Japanese auto industry company did not provide a balance throughout 2025, it did project Operating income 3.8 trillion yen ($ 26.1 billion) for the fiscal year ending March 2026 – much less than 4.7 trillion yen. It is expected by analysts.
While Toyota has increased from local production in the United States to more than half of sales in the country, it still depends on the imports of major auto parts and models – to about 1.2 million cars annually. The White House noticed that Trump called the car maker in Toyota by name during his controversial liberation day in the Roses Park on April 2. He complained about the “million foreign cars” Toyota, which is sold in the United States.
The huge tariff reflects the company’s decision to keep the poster line for American traders and production volumes in its 11 American factories in the beginning of bilateral trade negotiations between the United States and Japan. These talks started in February, and it is unclear when they will take a deal.
“When it comes to tariffs, the details are still incredibly liquid.” “It is difficult to take steps or measure the effect.”
On April 30, the chief trading negotiator in Japan, Riosi Akazawa, said that the Japanese auto manufacturer, whose name was not currently losing about one million dollars per hour of customs tariffs, indicating an account by an unspecified executive official. On Friday, a Japanese government official refused to provide more details. But this loss rate is not far from the $ 1.2 billion Toyota mark on the basis of 730 hours per month. Toyota representatives also did not respond to a comment.
Akazawa expressed his hope to reach an agreement in June with the next round of negotiations taking place in late May.
Most imported vehicles are subject to the duty of the United States by 25 % on April 3, while most car parts are subject to that tax as of May 3. There are some executive orders that prevent duties from doubling, but taking into account the United States isThe largest marketFor the five largest manufacturers in Japan, the moderate increase in customs tariffs will have a significant impact on their lower lines.
Read more:Trump’s tariff that already strikes some Japanese companies, as the survey appears
The Trump administration arrived The first commercial deal On May 8 with the United Kingdom. But the United States has a $ 11.9 billion merchandise trade surplus With the United Kingdom last year, while it was $ 68.5 billion Disability With Japan. This may make it more difficult to secure an agreement without significant concessions.
Hiroshi Namioca, chief strategic expert at T & D Asset Management Co. said.
Some Japanese auto manufacturers responded to the new difficult commercial environment by making changes to their feet in global manufacturing. April Motor Co. US orders for four -wheel drive cars built in Mexico during Honda Motor Co. Transferring the production of the hybrid version of CIVIC from Japan to the United States. Because of the revenge definitions against the United States, Mazda engine Co. By stopping exports to Canada from one model that is manufactured at the Alabama factory, a joint venture with Toyota.
Japanese production pledge
Toyota has already invested significantly to build its American operations – including spending $ 13.9 billion on A.New battery factoryIn North Carolina. But it also remains committed to maintaining the wide local production base. Chairman of the Board of Directors Akio Toyoda repeatedlypledgeTo continue making at least three million cars annually in Japan. Last year, the companyBuilt3.1 million cars in her home country, about a third of its total production around the world.
Globally, Toyota sold 10.8 million cars in 2024, as the United States represents just less than a quarter of these. While the half was made locally and came 30 % of Canada and neighboring Mexico, about 281,000 cars were imported from Japan. This includes famous models such as 4Runner Mid Sign SUV, Prius Hybrid and an upscale several Lexus Vehicles.
The best sales of the company in the United States-Rav4 Hybrid Crossover and Corolla Compact Sedan-in factories in Kentucky and Mississippi. But RAV4 is only imported of gas from Canada and the hybrid ingredients come from Japan. Corolla models are models such as GR sports, and they are dorsal and hybrid gas, also carrying stickers made in Japan.
This exposure places Toyota at the Trump Administration intersection and means that the auto manufacturer has a lot of results on the results of the United States and Japan commercial negotiations.
The auto maker quietly pushed the White House, pointing to a spokesman that he is committed to spending nearly $ 21 billion in the United States since 2020.PledgeDuring the first administration of Trump – then similarlyAttackedBy the American President. Toyota also said that direct industrial workers in the United States have increased to 31,000 workers, up from 25,000 in 2016.
One of the problems it faces: severe control of flexibility in current manufacturing facilities in the United States, which may affect its ability to transfer vehicles from outer plants. ToyotaFactory in GeorgetownKentucky-its oldest and largest assembly operations in the United States-it does not have a recession on the new models. She was fully operating in about 100 % of her maximum sting from late April, according to a representative of the United States for the company.
This story was originally shown on Fortune.com
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