Business
$1.2B

Toyota, the world’s largest automaker by sales, is expecting a tariffs cost of $1.2 billion to weigh on profits. That figure would be in line with the full-year tariff hit forecasts made by rivals Ford ($1.5 billion) and Rivian ($1.9 billion), except for one detail: Toyota’s estimate is just for April and May.

The Prius maker on Thursday said it expects a 21% drop in operating profit this year, citing tariffs and elevated raw material costs. A Tokai Tokyo analyst estimates the carmaker’s total 2025 tariff charge could end up at 800 billion yen ($5.5 billion).

So far, Toyota has maintained that it will continue to run its US operations as usual and hasn’t hinted at potential price hikes. According to reporting by Reuters, the carmaker is weighing moving production of its upcoming RAV4 SUV to the US.

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