Toyota Reduces Revenue Forecast Due to Trump's Tariffs

• Toyota announced a 37% reduction in revenue for the second quarter of 2025.
• The company lowered its revenue forecast for the financial year due to Trump's tariffs.
• Toyota's sales increased by 3% to 12 trillion yen.

Toyota announced a significant 37% reduction in revenue for the second quarter of 2025. This occurred due to tariffs imposed by President Donald Trump on imports from Japan, particularly on automobiles. The company's revenue amounted to 841 billion yen (5.7 billion dollars), which is lower than 1.33 trillion yen for the same period last year.

The company also lowered its revenue forecast for the entire financial year, from an estimated 3.1 trillion yen to 2.66 trillion yen (18 billion dollars). The main reason for this is 450 billion yen (3 billion dollars) in losses caused by tariffs.

These tariffs, which account for 15%, have inflated the cost of imported vehicles and increased material expenses. Despite this, Toyota reported a 3% increase in sales to 12 trillion yen (82 billion dollars). Since the beginning of the year, 2.4 million vehicles have been sold, which is more than 2.2 million in the previous year.

A recent agreement between the USA and Japan anticipates a reduction in tariffs on Japanese automobiles to 15%, but this is still less than the previous specific tariffs, which reached 27.5%. Toyota considers itself one of the companies most affected by these tariffs, especially regarding general global problems in the automotive industry, which is crucial for the Japanese economy.

Tags: Automotive