Toyota is facing a $1.2 billion tariff bill
Toyota is facing a staggering $1.2 billion tariff bill, and that sum only includes tariff costs for April and May.
The Japanese automaker released financial results on May 8, which the company said "tentatively factored in" the estimated costs of the Trump tariffs.
In its FY2025 financial results, the company forecasted material costs for the coming year at 350 billion yen. But that number does not include an additional 180 billion yen for tariff impacts.
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To put these numbers in perspective, Toyota reported a net profit for the year of $32.7 billion (through March). The $1.2 billion tariff bill would amount to 4 percent of the company's profit. Overall, Toyota's operating profit was down about 10.4 percent year over year, and the company forecasted a steeper decline of 21 percent in 2026.
The company also reported that electric vehicle sales now accounted for 46.2 percent of total sales, a “significant increase” driven largely by hybrid EVs like the Prius. The company sold an additional 850,000 EVs in the latest fiscal year, and it expects EVs to account for 50 percent of all sales in 2026, a major milestone. Across the world, current and potential Tesla drivers are rejecting the brand because of polemic CEO Elon Musk, which could be a boon for companies like Toyota.
The financial report also acknowledges the uncertainty of the current financial moment. The slapdash rollout of the Trump tariffs has caused much confusion and many price increases, and the report highlights "the difficulties in anticipating the business outlook due to the impact of U.S. tariff impacts and other factors."
Previously, Mashable reported on the ongoing fallout from the Trump tariffs. Smart home company Wyze recently shared a steep tariff bill on X, while e-commerce giants like Shein and Temu are struggling after the May 2 expiration of the de minimis exemption for imports.
According to the Wall Street Journal, Toyota only included the April and May tariff impacts because the tariff situation is so "fluid." The United States and Japan are actively negotiating the latter's tariff rate.
We reached out to Toyota for comment on the tariff situation, and we'll update this report if we hear back.
Topics Electric Vehicles Cars Politics Tariffs
Timothy Beck Werth is the Tech Editor at Mashable, where he leads coverage and assignments for the Tech and Shopping verticals. Tim has over 15 years of experience as a journalist and editor, and he has particular experience covering and testing consumer technology, smart home gadgets, and men’s grooming and style products. Previously, he was the Managing Editor and then Site Director of SPY.com, a men's product review and lifestyle website. As a writer for GQ, he covered everything from bull-riding competitions to the best Legos for adults, and he’s also contributed to publications such as The Daily Beast, Gear Patrol, and The Awl.
Tim studied print journalism at the University of Southern California. He currently splits his time between Brooklyn, NY and Charleston, SC. He's currently working on his second novel, a science-fiction book.
