A year ago, Toyota Motor Corporation was thriving, with strong sales of hybrids in the U.S. and a favorable yen boosting its earnings. However, Toyota recently projected a 20% decline in operating profit for the fiscal year ending in March, citing challenges from a stronger yen and an estimated $1.3 billion loss due to President Trump’s tariffs in April and May alone. The company only assessed the impact of the auto tariffs for those two months, stating that forecasting further effects is “very difficult.” Toyota’s CEO, Koji Sato, highlighted the volatility in the auto industry, particularly concerning trade relations. The implementation of a 25% tariff on vehicle imports into the U.S. last month, extended to auto parts last week, underscores the disruption caused by Trump’s tariff policies. This situation also reflects Japan’s predicament in negotiations with the U.S., as higher auto tariffs are already affecting its key industry. While a 24% tax on imports from Japan has been paused until early July, existing tariffs continue to impact Japan’s primary export to the U.S.: automobiles and auto parts. — new from The New York Times
