Toyota's Profit to Drop 21% Due to Trump Tariffs, Ford and Mitsubishi Hike Prices, Nippon Steel Faces 43% Decline

Toyota Motor Corp. has forecasted a significant decline in its full-year profit, projecting a 21% drop to ¥3.8 trillion ($26 billion) in operating income for the fiscal year ending March 2026, down from ¥4.8 trillion the previous year. The company attributes this decline primarily to the impact of President Donald Trump's tariffs, which have already cost Toyota ¥180 billion in April and May, and a weaker U.S. dollar, which adds a ¥745 billion foreign exchange headwind. Additionally, Toyota reported a ¥100 billion operating loss in North America last quarter, highlighting the regional challenges it faces. The tariffs have also resulted in a $1.3 billion hit to Toyota's profits in just two months, contributing to an expected ¥1 trillion drop in operating profit for the fiscal year. In response to the tariffs, Ford Motor Co. has raised prices on three of its models produced in Mexico, with increases of up to $2,000. This move makes Ford one of the first major automakers to adjust prices following the imposition of the tariffs. The price adjustments, effective from May 2, affect models such as the Mustang Mach-E, Maverick pickup, and Bronco Sport, which are priced between $28,000 and $36,000. Ford estimates that the tariffs will cost the company $1.5 billion for the entire year of 2025. Nippon Steel Corp. also anticipates a substantial impact from the U.S. tariffs, expecting its net profit for fiscal 2025 to decrease by 43% to ¥200 billion ($1.38 billion). The steelmaker is currently navigating uncertainties related to its proposed acquisition of U.S. Steel Corp., with a decision expected by early June. The company's operating profit for the fiscal year ended March 2025 fell 29.6% to ¥547.96 billion, reflecting broader economic pressures including inflation and a slowdown in China. Nippon Steel's net profit for fiscal 2024 fell 36.2% to ¥350.23 billion. Mitsubishi Motors is contemplating price hikes in the U.S. in response to the tariffs, marking the first such action by a Japanese automaker. The company expects its costs to rise by about $344 million due to the Trump administration's tariff policies. This move follows Ford's price adjustments and indicates a broader industry response to the new economic realities imposed by the tariffs.