US President’s customs plans Donald Trump (78) meet the world’s largest car manufacturer Toyota Motor hard. The Japanese group announced on Thursday that it expects a good 20 percent less profit for the current financial year until March 2026.
Toyota is more strongly hit by the new weakness of the US dollar to the Yen, which the margins in the export business defined from the new weakness of the US dollar.
The fact that the details of the tariffs are still unclear makes it even more difficult to deal with the problem, said CEO Koji Sato (55): “Whether these tariffs are permanent and what will happen is nothing that we can decide.”
Around 23 billion euros in business profits are expected
Toyota expects the operating result in the current year at 3.8 trillion yen (the equivalent of 23 billion euros). In the past financial year, Toyota earned 4.8 trillion yen.
In the final quarter 2024/25, Toyota kept the operating profit stable at a good 1.1 trillion yen. The Toyota share hardly changed after announcing the numbers.
As the reasons for the expected decline in profits, the industry leader cited the stronger yen, higher material prices and the effects of the US tariffs. Like other car manufacturers with strong US business, Toyota has to expect higher labor costs there, and massive investments could also be necessary if the company decides to expand its US production.
Japan only ray of hope
With globally active manufacturers such as Toyota, not only the exports are in the USA In the risk, but due to a possible deterioration in international consumer mood, exports to other countries. In the world’s largest car market China suffered Toyota from the strengthening domestic competition, but posted lower declines than other Japanese manufacturers.
The only bright spot was the Japanese home market, where profit attracted 18 percent in the final quarter.
In view of the US customs plans, other large carmakers do not make a forecast for this year, according to Mercedes-Benz and the Opel mother group Stellantis. Volkswagen As the world’s second largest manufacturer behind Toyota, a winning expectation for 2025 has published, but expressly excluded the consequences of the tariffs.