Toyota warns of $1.3B tariff impact in April, May

Toyota is facing significant financial impacts from President Trump's tariffs, estimating a $1.2 to $1.3 billion hit to profits for just April and May 2025, contributing to a forecasted 21% decline in operating profit for the fiscal year ending March 2026. The automaker highlighted the difficulty in forecasting future tariff-related costs due to ongoing U.S.-Japan trade negotiations and the evolving nature of the trade war. Alongside tariffs, Toyota is also contending with a stronger yen and rising raw material costs, further pressuring profitability. While Toyota has not yet indicated plans to raise vehicle prices in response to tariffs, industry analysts predict that tariffs combined with retaliatory measures could lead to consumer price increases ranging from $2,000 to $12,000 per vehicle. Other major U.S. automakers like General Motors and Ford are also experiencing similar tariff-related financial challenges, with GM estimating $4 to $5 billion in costs and Ford raising prices on select Mexico-made models by up to $2,000. Toyota is reportedly considering shifting production of some models, such as the RAV4 SUV, to the U.S. to mitigate tariff impacts but remains cautious given the volatile trade environment.