Toyota faces a staggering $1.2 billion tariff bill, which includes only tariff fees in April and May.
The Japanese automaker released its financial results on May 8, and the company said the estimated costs of Trump’s tariffs were “temporarily considered.”
In its financial results for fiscal 2025, the company forecasts materials costs of ¥350 billion in the coming year. But this number is indeed no An additional 180 billion yen was included for tariff impacts.
To look at these figures, Toyota reports that the annual rate is $32.7 billion (to March). The $1.2 billion tariff bill will account for 4% of the company’s profits. Overall, Toyota’s operating profit fell by about 10.4% year-on-year, with the company forecasting a 21% decline in 2026.
Mixable light speed
The company also reported that electric vehicle sales now account for 46.2% of total sales, a “significant increase” for hybrid electric vehicles such as Prius. The company sold another 850,000 electric vehicles in its latest fiscal year, and electric vehicles are expected to account for 50% of all sales in 2026, a major milestone. Globally, current and potential Tesla drivers are rejecting the brand due to controversial CEO Elon Musk, which could be a boon for companies like Toyota.
The financial report also confirms uncertainty in the current financial moment. The introduction of Trump’s tariffs has caused a lot of chaos and price increases, and the report highlights “difficult in anticipation of business outlook due to the impact of U.S. tariffs and other factors.”
Previously, Mashable reported on the ongoing impact of Trump’s tariffs. Smart home company Wyze recently shared a huge tariff bill on X, while e-commerce giants like Shein and Temu are struggling after import waivers after expiration on May 2.
according to Wall Street JournalToyota only includes tariff impacts in April and May because the tariff situation is so “smooth”. The United States and Japan are actively negotiating the latter’s tariff rate.
We have been in contact with Toyota about the tariff situation and we will update this report if we hear back.
