- Toyota is sounding the loudest warning bell yet about tariffs. The automaker said it expected its profits to be $9.5 billion lower this year because of the Trump tariffs on cars imported to the U.S. Other major automakers have also warned of multi-billion dollar hits.
As tariffs begin to roll out, Toyota is warning investors that the levies will cut deeply into its profits this year.
The world’s largest automaker on Thursday said it expected its profits to be $9.5 billion lower this year because of the Trump tariffs on cars imported to the U.S. That’s the highest impact estimate any company has given to date.
The company also said it was cutting its full-year operating profit forecast by 16%.
Toyota now says it expects an operating profit of $21.7 billion.
A trade deal secured last month cut the tariff on imported cars and parts from 27.5% to 15%, but that’s still six times higher than Toyota and other automakers were paying at the start of 2025.
Big automakers are more likely to absorb tariffs to keep the cost of their cars steady and avoid scaring off consumers.
“It’s honestly very difficult for us to predict what will happen regarding the market environment,” said Takanori Azuma, Toyota’s head of finance in a briefing.
While Toyota is predicting the largest profit loss due to tariffs, it’s hardly alone in reducing its forecasts. Honda, on Wednesday, said it expects tariffs to cost it roughly $3 billion in profits this year, which is lower than initial estimates. Nissan said it expects a $2 billion hit to profits.
GM, meanwhile, is projecting profits will be between $4 billion to $5 billion lower than expected this year. Ford says its full-year gross revenues will take a $3 billion hit. And Jeep maker Stellantis expects tariffs to increase expenses by $1.7 billion this year.
