By Esohe Aifuwa
Toyota Slashes Profit Forecast Amid U.S. Tariff Hike
Toyota, Japan’s leading automaker, has lowered its annual net profit projection to 2.66 trillion yen ($18.06 billion) due to the financial strain from elevated U.S. tariffs on imported Japanese vehicles.
The company announced the revised forecast Thursday, citing a significant hit to its operating income.
The U.S., under the Trump administration, imposed a 25 percent tariff on Japanese cars in April, disrupting Japan’s vital auto industry.
A subsequent trade agreement in July reduced the tariff to 15 percent, offering some relief, though uncertainty persists about when the new rate will take effect.
Furthermore, questions also remain about whether the revised tariff will replace or add to the existing 2.5 percent levy, potentially keeping the total at 27.5 percent.
Read More:https://mediaerrandsnews.com/japan-raises-concerns-over-u-s-auto-tariffs/
Toyota reported a 3.5 percent revenue increase for the April-to-June quarter but saw a sharp 36 percent drop in net income. The company’s shares dipped 0.6 percent in Tokyo trading Thursday afternoon, reflecting investor concerns over the ongoing trade challenges.
