Toyota's Profits Plummet Amidst Trade Disputes
(MENAFN) Toyota Motor, the world's leading car manufacturer, is reportedly facing significant financial setbacks due to the ongoing trade disputes instigated by U.S. President Donald Trump. The company projects a $1.2 billion profit reduction within a two-month timeframe, contributing to a substantial gap between their forecasted operating income and analyst expectations.
The impact stems from tariffs imposed on imported cars and auto parts, forcing General Motors to revise its annual profit forecast downwards by as much as $5 billion, while Ford Motor anticipates a $1.5 billion annual loss. Toyota, despite increasing its U.S.-based production to cover over half of its sales in the country, still relies heavily on imports, with approximately 1.2 million vehicles entering the U.S. annually.
This reliance has drawn the attention of the White House, with President Trump specifically naming Toyota during his Liberation Day address, criticizing the company's import volume. The Japanese automaker's decision to maintain current vehicle prices and production levels at its 11 US factories, amidst ongoing trade negotiations between the U.S. and Japan, has amplified the financial strain. These negotiations, initiated in February, remain unresolved, leaving Toyota's future earnings uncertain.
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