Toyota says President Trump’s tariffs will cost automaker $1.3 billion

The White House has indicated that it plans to ease tariffs that have been affecting the auto industry, following concerns raised by major automakers such as Toyota. The Japanese automaker recently revealed that President Trump’s tariffs would result in a hefty cost of $1.3 billion in just two months.

During a press briefing on Thursday regarding its fiscal year ending on March 31, 2025, Toyota emphasized the impact of these tariffs on its profits. The company stated that it anticipates a significant financial hit of $1.3 billion in April and May alone due to the imposed levies.

In March, the Trump administration implemented a 25% tariff on approximately 8 million vehicles imported into the U.S. that are assembled overseas. This move has prompted concerns among industry players about the repercussions on businesses and consumers.

Toyota’s CEO, Koji Sato, refrained from making specific predictions about the future implications of the tariffs, citing the difficulty in forecasting such impacts accurately. However, other automakers like General Motors have already revised their profit forecasts for 2025, with estimates suggesting that the tariffs could cost them billions of dollars.

In response to the tariffs, Ford confirmed that it would be raising prices on three car models manufactured in Mexico by up to $2,000. While Toyota did not explicitly state that it would increase prices for customers to offset the tariff-related expenses, the company expressed its intention to assess the situation and take appropriate action when necessary.

Sato emphasized that Toyota is not inclined to hastily raise prices due to tariff escalations. The combination of import duties on foreign-made vehicles and retaliatory tariffs from trading partners like China is expected to lead to price hikes for consumers. According to Anderson Economic Group, depending on the car model, prices could surge by $2,000 to $12,000.

The auto industry’s concerns about the impact of tariffs on their businesses and customers underscore the complexities and challenges posed by trade policies. As the White House signals a potential easing of tariffs affecting the auto industry, stakeholders will be closely monitoring developments to gauge the implications for the sector.