lefigaro.fr
Toyota Forecasts 35% Profit Drop Due to US Tariffs
Toyota projects a 35% drop in net profit for 2025-2026 due to over €1 billion in US tariffs on imported vehicles and parts; the company plans to adjust US deliveries and increase local production to mitigate the impact.
- What is the projected impact of US tariffs on Toyota's net profit for 2025-2026, and what are the immediate consequences?
- Toyota, the world's leading automaker, anticipates a nearly 35% decrease in net profit for 2025-2026 due to US tariffs, estimated at over €1 billion. This substantial drop, to ¥3,100 billion (€19 billion), is more significant than anticipated, despite projected 1% sales growth. The company attributes this to newly implemented US tariffs.
- How does the ongoing trade dispute between the US and Japan affect Toyota's production and sales strategies, and what adjustments has the company made?
- The US tariffs, imposed in April and May 2025, on imported cars and parts, significantly impact Toyota's profitability. While negotiations are ongoing, the company has already factored in an estimated ¥180 billion (€1.1 billion) impact, highlighting the substantial economic repercussions of trade disputes. This situation underscores the vulnerability of Japanese automakers to US trade policy.
- What are the long-term implications of this tariff dispute for Toyota's global operations and investments, and what broader trends in the automotive industry does it reflect?
- Toyota's response involves adjusting US deliveries and increasing local production to mitigate tariff impacts. This strategy reflects the broader trend of automakers shifting production to the US to avoid tariffs, though this process is time-consuming and expensive. The company's continued investment in US facilities, such as a new battery plant, signals a long-term commitment despite short-term challenges.
Cognitive Concepts
Framing Bias
The headline and introductory paragraphs immediately emphasize the substantial drop in Toyota's projected profits, setting a negative tone. While acknowledging a projected sales increase, the focus remains firmly on the negative financial impact of the tariffs. The sequencing of information, prioritizing the profit decline over other aspects, shapes the reader's understanding towards a predominantly negative interpretation of the situation.
Language Bias
The article uses relatively neutral language, but the repeated emphasis on the "effondrement" (collapse) of profits and the use of phrases like "sévèrement perturbées" (severely disrupted) contribute to a negative tone. While accurate, these choices could be softened for greater objectivity. For example, instead of "effondrement," "significant decrease" or "substantial decline" could be used.
Bias by Omission
The article focuses heavily on the negative impact of US tariffs on Toyota's profits, but omits discussion of potential mitigating factors such as Toyota's existing US production and its investments in electric vehicle battery production. It also doesn't explore the broader economic context of US-Japan trade relations or alternative strategies Toyota might employ beyond relocation of production. While acknowledging negotiations are ongoing, the article doesn't present different perspectives on the tariff situation.
False Dichotomy
The article presents a somewhat simplified view of Toyota's response to the tariffs, focusing primarily on relocation of production as the solution. It doesn't fully explore the complexities and challenges of this approach, nor does it consider other strategies the company might pursue to offset the impact of the tariffs.
Sustainable Development Goals
The article highlights a significant projected decrease in Toyota's net profit due to US tariffs. This negatively impacts economic growth, potentially leading to job losses within Toyota and its supply chain in Japan, where the auto industry employs a substantial portion of the workforce (approximately one in eight jobs). The uncertainty surrounding tariffs further destabilizes economic planning and investment.