Toyota motor profit makes estimates – but by 11%when US tariffs bite

Toyota engine On Thursday, a higher than expected operating profit for the Juni Quarter, even as the world’s largest automotive company through sales volume with US tariffs.

Here are the results of Toyota compared to the middle estimates of LSEG:

• Income: 12.25 trillion yen compared to 12.19 trillion yen
• Operating profit: 1.17 trillion yen compared to 881.41 billion yen

However, the operating profit for the quarter fell by 11% compared to the yearPresent with the company that loses 450 billion yen on US tariffs. The net income of net income was due to the company 37% to 841.3 billion yen.

Toyota also revised its total annual forecast of the year by 600 billion yen to 3.2 trillion yen.

“Due to the effects of US tariffs and other factors, the actual results showed a reduced operating result, and the forecast was revised downwards,” said the company.

During the profit, Toyota recorded a strong worldwide demand and the car manufacturer last week Record sales registered worldwide In the first half of the year.

“Despite a challenging external environment, we have continued comprehensive investments and improvements such as increased sales of units, cost cuts and extended profits of the value chain, which minimizes negative effects,” said the company.

Japanese car manufacturers were hit by the US President Donald Trump25% Tariff on imported vehicles that came into force in April. Colleagues like Honda have it too reported a drop in profitswhile reducing prices to maintain the market share in the USA

“The Japanese car manufacturers had considerable profit pressure at the beginning of this year due to increased US import duties and a stronger yen,” the automotive analyst at Contrapoint Research ABHIK Mukherjee told CNBC.

“Although vehicle export volumes were held up to the USA, the higher costs of the tariffs had to be partially absorbed and the edges squeezed,” he added.

In June, the value of Japanese car exports to the USA fell by 25.3% compared to the previous year, although export volume in the United States rose by 4.6% in the same period Data from the Japan’s Ministry of Commerce.

However, Trump announced a new trade agreement with Tokyo last month, whereby the tariffs will probably fall to 15%, although the time frame for the change is still unclear.

“The car manufacturers are still exposed to the strong yen and persistent cost loads from previous tariffs. However, the 15% price in combination with localization and price adjustments should gradually stabilize the result,” said Mukherjee.

“In the long term, Japanese brands can gain an advantage over NAFTA region competitors who still have higher tariffs and support slow but steady recovery,” he added. The NAFTA or North America free trade agreement includes Canada, Mexico and the USA

AutoXports in the United States are a cornerstone of the Japanese economy and make up about 24% of its global car programs in 2024. Japan’s customs data shown.