Toyota Profit Takes A Dive

Toyota’s profit plunged 37% in the April–June quarter, the company said, cutting its full-year earnings forecast largely because of President Donald Trump’s tariffs, Yuri Kageyama reported for the Associated Press (AP).

Toyota and other Japanese automakers have factories in the U.S., but they also rely on components from other countries — meaning they will pay higher tariffs even for their U.S.-made cars. (Photo: TOYOTA Facebook)

The Japanese automaker said it based its forecast on the assumption that Trump’s tariffs on exports from Japan, including automobiles, would be 12.5% starting this month.

As of now, they stand at 15%.

Toyota and other Japanese automakers have factories in the U.S., but they also rely on components from other countries — meaning they will pay higher tariffs even for their U.S.-made cars.

The same holds true for U.S. carmakers that depend on components from Mexico and Canada.