United States Tariffs Hurt Toyota’s Earnings

Toyota Motor Corporation fell short of operating profit estimates for the quarter ending in September, as the Japanese automotive giant faces challenges from US tariffs.

Here are Toyota’s results for the quarter compared to LSEG’s average estimates:

Revenue: about $81 billion

Operating profit: 834 billion yen versus 863.1 billion yen

The world’s largest carmaker by volume on Wednesday reported a nearly 28% year-over-year drop in profits, while revenues rose more than 8%.

The company published results for the first half of the year—from April to September—and the quarterly figures were calculated by CNBC, based on the company’s statement and data from LSEG.

Toyota revised its operating profit forecast for the full financial year ending in March to 3.4 trillion yen, up from an earlier forecast of 3.2 trillion yen.

“Despite the impact of US tariffs, strong demand, supported by the competitiveness of our products, led to increased sales volumes mainly in Japan and North America and expanded profits across the value chain,” Toyota said in an earnings report.

The company said it will continue to focus on increasing sales volume, reducing costs, and expanding profits across the value chain.

The company’s profits declined for the second consecutive quarter since the US imposed “reciprocal” tariffs in April. In July, Tokyo and Washington agreed to reduce export tariffs from 25% to 15%, which took effect on August 7.

Japanese auto shipments to the US saw a sharp decline in value terms, with exports falling 24.2% in September, down slightly from a 28.4% drop in August.

By unit sales, Toyota continued to show strong global demand. The company recently reported that sales of vehicles, including the Lexus luxury brand, reached 5.3 million in the nine months to September, up 4.7% on the previous year.

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