Japanese auto giant, Toyota, on Thursday cut its annual net profit forecast to 2.66 trillion yen ($18.06 billion) owing to the impact of US tariffs.
Japanese auto giant, Toyota, on Thursday cut its annual net profit forecast to 2.66 trillion yen ($18.06 billion) owing to the impact of US tariffs.
“Due to the impact of US tariffs and other factors, actual results showed decreased operating income, and the forecast has been revised downward,” the company said in a statement.
Its shares fell 0.6 percent in Tokyo afternoon trade.
The Trump administration in April imposed a 25 percent levy on Japanese cars imported into the United States, dealing a hefty blow to Japan and its crucial auto sector.
Although Tokyo and Washington announced a trade deal in July, lowering that rate to 15 percent and providing a degree of relief for the industry, it’s not yet clear when it will take effect.
There is also confusion over whether the car tariff — as well as other “reciprocal” levies — will be capped at 15 percent, or if these would come on top of those in place before Trump’s trade blitz.
The auto industry had a pre-existing 2.5 percent tariff, meaning the levy currently stands at 27.5 percent.
Revenues in Toyota’s first quarter from April to June were up 3.5 percent, but net income dropped by 36 percent
AFP