Japanese automaker Toyota said President Trump’s tariffs would cost the company $1.3 billion in just two months.
Toyota highlighted the levies’ hit to profits at a press briefing on Thursday on its fiscal year which ended March 31, 2025. The company said during the briefing that it expects the tariffs to cost it $1.3 billion in April and May alone.
The Trump administration in March imposed a 25% tariff on the roughly 8 million vehicles assembled abroad that the U.S. imports annually.
The carmaker stopped short of making predictions on future tariff hits on business, with Toyota CEO Koji Sato saying that any future impact would be “very difficult to forecast.”
Other industry players have also spelled out the tariffs’ effects on businesses and consumers.
General Motors last week also lowered its 2025 profit forecast, estimating that Trump’s tariffs will cost it at least $4 billion for 2025. Ford on Wednesday confirmed to CBS News that the same duties would cause it to raise prices on three car models made in Mexico by as much as $2,000.
While Toyota did not specify that it would raise customer prices to reflect added tariff-related costs, it said it would “look at the situation and take the appropriate action at the appropriate timing.”
“Just because of tariff rising prices in — hastily is not the type of reaction Toyota is thinking of,” Sato said.
In many cases, the import duties on foreign-made cars, combined with retaliatory tariffs from the U.S. trade partners such as China, will lead to price hikes for consumers. Depending on the car model, price tags could grow by $2,000 to $12,000, according to Anderson Economic Group (AEG), a consulting and research firm.
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