Toyota Motor Corp. is bracing for a $1.2 billion drop in profit in just two months due to US tariffs on imported cars and auto parts — the biggest projected loss among global automakers in President Trump’s ongoing trade war.
Despite producing over half its US-sold vehicles locally, Toyota still imports around 1.2 million cars annually. Trump criticized the company directly in an April speech, citing its high number of foreign-made cars sold in the US. The tariffs, introduced in April and May, come as US-Japan trade talks continue without a clear end in sight.
Toyota’s CEO Koji Sato warned that it’s “difficult to take steps” amid uncertainty. Japan’s negotiator Ryosei Akazawa said one automaker is losing about $1 million per hour — a figure consistent with Toyota’s estimated losses.
The automaker maintained US production levels and dealer pricing despite the tariffs, but forecasts 2025 operating income of ¥3.8 trillion — far below analyst expectations. Other Japanese carmakers are also adjusting strategies: Nissan halted US SUV orders from Mexico, Honda is moving hybrid production to the US, and Mazda is halting Canadian exports of a US-made model.
Toyota says it’s focused on cutting costs while monitoring evolving US trade actions.