Details
💸 Record Hit: Toyota expects ¥1.4 trillion (≈ $9.5 billion) in additional costs from the new US import duties this fiscal year—the largest single-company tariff hit on record.📉 Earnings Warning: Forecast for 2025/26 operating profit is down 16 % to ¥3.2 trillion (≈ $21 billion). North America already slipped into the red in Q1.🔄 Supply-chain Crossfire: Duties don’t just hit Japanese exports—they also apply to parts shuttling between US, Canadian, Mexican, and Japanese plants.⚖️ Industry Comparison: Ford anticipates $2 billion in extra costs, GM $4–5 billion, and Stellantis $1.7 billion. Toyota bears the heaviest burden.🏭 Countermeasures: Despite the headwinds, Toyota is pressing ahead with a new Aichi plant and aims to sell 11.2 million vehicles globally; hybrids remain its key growth driver.
Why It Matters
- Political Price Tag: These figures show how a single tariff move can rattle global production networks, fueling ongoing trade talks between Washington and Tokyo.
- Cost vs. Climate: Higher duties risk slowing investments in electric and hybrid vehicles—potentially derailing the sector’s decarbonization efforts.
- Investor Insight: Margin pressure on auto giants like Toyota signals that future stock valuations will hinge more on tariff and currency risks.
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