US duties will cost Toyota $9.5 billion. The Japanese auto giant has lowered its profit forecast

Japanese auto giant Toyota Motor has lowered its operating profit forecast for fiscal 2025 (through March 2026) by 16%, expecting losses due to US tariffs to amount to about $9.5 billion. About writes Reuters.

The company's expected losses due to U.S. import duties underscore the growing pressure on margins across the automotive industry.

Toyota Motor forecasts an operating profit of 3.2 trillion yen ($21.7 billion), instead of the previous 3.8 trillion yen.

Losses in the first quarter of fiscal year 2025 (April-June) alone from tariffs in the United States amounted to 450 billion yen, and the North American division showed an operating loss of 63.6 billion yen for the period (last year it was a profit of 100.7 billion).

However, despite the financial pressure, Toyota said it would continue to produce cars for the US market, regardless of the impact of the duties.

Last week, the company reported record global sales and production for the first half of 2025, driven by strong demand in North America, Japan, and China.

Toyota also announced that it plans to build a new plant in Japan, despite a decline in domestic sales due to population decline.

Production at the new facility is scheduled to begin early next decade, but it has not yet been decided which models will be produced there.

• On July 23, US President Donald Trump announced that it had reached a "large-scale" trade agreement with Japan. It provides for reduction of duties on Japanese cars and auto parts from 25% to 15%.