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As President Trump was touting his new trade deal with the U.K. and sending representatives
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to Switzerland to begin talks with China, Japan's largest automaker, Toyota, was revealing
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that the Trump tariffs will cost it $1.25 billion in earnings in April and May
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The Wall Street Journal reports that for the fiscal year that ended in March, Toyota made
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3.2 million vehicles in Japan and exported about 542,000 to the United States
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The Trump administration began imposing a 25 percent tariff last month on foreign-made cars
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coming into the country. Despite that, Toyota Chief Financial Officer Yoichi Miyazaki said Toyota
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will not raise prices in the United States simply because of the tariffs. Toyota was the world's
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largest carmaker in 2024, selling 10.8 million vehicles. In order to sell cars in the U.S.
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Toyota and other Japanese automakers make cars in Japan as well as Mexico and export them to the United States They also produce some vehicles at American plants and might face higher labor costs if they decide to expand in the U Toyota says profits
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for the first three months of 2025 dropped by 33 percent compared to 2024. The Journal quotes
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Toyota chief executive Koji Sato as saying the tariffs are fluid and make predicting the future
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difficult. He says Toyota will continue to develop and manufacture cars based on where its customers
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are located. The journal notes Toyota's stock price is down 15 percent this year due to concerns
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about the new U.S. tariffs. Higher costs of materials are also expected to negatively affect
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profits. Sato said whether these tariffs are permanent or not and what will happen is not
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something we can decide. Some economists and ysts believe the tariffs on vehicles will
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lead to rising prices in this country for car buyers. In addition, a reduction in consumer
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confidence and sentiment could also affect the auto industry going forward. For more unbiased updates, download the Straight Arrow News app
