Headline: UNCAPTIONED: Toyota Warns of Profit Drop as Tariffs and Currency Pressures Mount
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Toyota Warns of Profit Drop as Tariffs and Currency Pressures Mount. Toyota expects a 20% drop in profits this financial year, with global trade tensions and President Trump’s tariffs taking a toll. The automaker forecasts operating income of 3.8 trillion yen, down from 4.8 trillion last year. The company says Trump’s tariffs cost it 180 billion yen in just April and May, but the bigger hit comes from currency shifts. A weaker U.S. dollar—driven by market uncertainty—is expected to slash earnings by 745 billion yen when converted back to Japan. Toyota CEO Koji Sato admitted the lack of tariff clarity is making it hard to plan ahead. Analysts warn the added costs could lead to price hikes for U.S. consumers and dent overall demand. Despite the headwinds, Toyota posted nearly flat quarterly profit, up just 0.3%. But with rising U.S. labor costs and potential investment needs, challenges remain.
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Keywords: Motoring,Toyota,20% drop,profits,financial year,global trade,tensions,President,Donald Trump,tariffs,taking toll,trillions,yen,automaker,forecasts,labour costs,US,currency shift,operating income,consumers
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