Japanese automaker Toyota said that it expects its profits to take a 1.4 trillion yen ($9.5 billion) hit from Trump administration tariffs on foreign cars, marking the highest such estimate of any company so far.

CNN reported on August 7 that Toyota has slashed its operating profit forecast by 16% for the fiscal year ending in March 2026, and saw its operating profit fall by nearly 11% year-over-year in the second quarter of 2025. And although the U.S. and Japan announced a framework trade deal on July 23 that would bring tariffs against Japan's exported cars down from 27.5% to 15%, it's unclear when that change will take effect.

Other Japanese carmakers are expecting similar hits to their bottom line, with Honda projecting tariffs to cost the company $3 billion in operating profit this year, and Nissan forecasting $2 billion in tariff-related losses. According to the Guardian, the auto industry accounts for 8% of jobs in Japan, while vehicles and automotive parts make up more than a third of the country's exports to the U.S. Toyota also sold nearly two million vehicles in the U.S. in 2024, the most of any brand.