Japan’s Toyota is the world’s largest automaker – and also the auto industry’s biggest loser when it comes to projected losses from US President Donald Trump’s trade war.
As Bloomberg reports, new tariffs on imported cars and auto parts have forced the US automaker General Motors to cut its full-year profit forecast by as much as $5 billion, while Ford is preparing for an annual decline of $1.5 billion.
At the same time, Toyota is recording a profit drop of $1.2 billion in just two months.
Although the Japanese automaker did not provide a full-year 2025 total, it projected operating income of 3.8 trillion yen ($26.1 billion) for the fiscal year ending in March 2026, well below the 4.7 trillion yen analysts had expected.
While Toyota has increased local production in the U.S. to more than half of its total sales in the country, it still relies on imports of key parts and vehicle models, amounting to about 1.2 million cars a year.
Trump called out the Japanese automaker during his controversial Independence Day speech on April 2. He complained about Toyota’s “million cars made abroad” and sold in the US.
“When it comes to tariffs, the details are still incredibly fluid,” Toyota Chief Executive Koji Sato said last week after announcing its latest financial results. “It’s difficult to take action or measure the impact.”
On the other hand, Bloomberg reports that an unnamed Japanese automaker is currently losing about $1 million per hour from tariffs, citing a calculation made by an unidentified company executive.
