Trump Tariffs expected to gut Toyota $2 billion lost in just 60 days
One of the world’s biggest carmakers has revealed the devastating two-month toll Donald Trump’s tariffs have taken on their bottom line.
Motoring
Don't miss out on the headlines from Motoring. Followed categories will be added to My News.
It seems as though Toyota has emerged as the biggest casualty of President Donald Trump’s trade war.
During a press conference earlier this week, Toyota president Koji Sato announced that the company expects tariffs to cost it USD $1.3 billion in just two months.
It’s the hardest blow among global automakers slapped with new tariffs by the Trump administration.
While Ford expects a USD $1.5 billion dent and General Motors has slashed its annual profit forecast by up to USD $5 billion, Toyota’s loss stands out as a staggering early blow.
The Japanese automaker didn’t provide a tally for all of 2025, it did project operating income of ¥3.8 trillion ($26.1 billion) for the fiscal year ending March 2026, missing analysts’ forecasts by approximately ¥1 trillion.
MORE:Massive car companies stop all US imports
MORE:How Trump tariffs will impact Aus car prices
Despite Toyota operating 11 factories across the US and assembling a majority of its American-sold vehicles domestically, the company still relied heavily on imports, approximately 1.2 million vehicles per year.
The company also manufactures cars all around the world but many are made in Japan.
Japan is under a 24 per cent tariff that is on pause, but is also subject to Trump’s 25 per cent tax on aluminium, steel, and auto exports, which is currently in effect.
Toyota chief executive officer Koji Sato admitted the company was flying blind as negotiations between Tokyo and Washington dragged on.
“When it comes to tariffs, the details are still incredibly fluid,” he said
“It’s difficult to take steps or measure the impact.”
Sato did not comment on the financial future of Toyota but said Toyota “ would look at the situation and take “the appropriate action at the appropriate timing.”
“Just because of tariff rising prices, [hasty] is not the type of reaction Toyota is thinking of,” he said.
MORE:Trump drops Musk bombshell, Tesla rocked
Despite this, Toyota is holding the line on sticker prices at dealerships and hasn’t pulled back production in the US plants.
Toyota chairman Akio Toyoda said the company is committed to building at least three million cars a year in Japan, a third of its total global output, even as the company pours USD $13.9 billion into an EV battery plant in North Carolina.
While Toyota did not comment on whether this will impact car prices, industry experts are expecting it will.
According to Anderson Economic Group, the least impacted vehicles will likely face a USD $2,000 tariff and the most impacted will see a tariff of $15,000.
Wedbush Securities analyst Dan Ives believes the price of a typical car could increase by USD $5,000 and $10,000.
Originally published as Trump Tariffs expected to gut Toyota $2 billion lost in just 60 days
The Yank tank cutting Australia in two
This massive SUV that’s just hit Australia could be the greatest car you will ever ride in, but if you’re on the outside it could be one of the worst.
‘Direct threat’: Temu hits back over ‘fake’ claims
Chinese mega-giant Temu has hit back after it was found counterfeit products that pose a ‘direct threat’ to its Aussie customers are for sale on its platform.