Toyota Motor June-quarter profit beats estimates — but drops 11% as U.S. tariffs bite

Toyota Motor on Thursday reported higher-than-expected operating profit for the June-quarter, even as the world’s largest auto company by sales volumes grapples with U.S. tariffs. 

Here are Toyota’s results compared with the mean estimates from LSEG:

• Revenue: 12.25 trillion yen vs. 12.19 trillion yen
• Operating profit: 1.17 trillion yen vs. 881.41 billion yen

Operating profit for the quarter, however, dropped 11% year on year. This Toyota’s Toyota’s third consecutive quarterly decline in operating profit.

Net income attributable to the company fell 37% to 841.3 billion yen.

Toyota has seen strong global demand. Last week the automaker reported record worldwide sales in the first half of the year.

Japanese carmakers have been cutting prices to retain market share in the U.S. after President Donald Trump‘s 25% tariffs on imported vehicles came into effect in April. 

In June, the value of Japan car exports to the U.S. fell 25.3% year over year, even though car export volumes to the U.S. rose by 4.6% in the same period, according to data from Japan’s trade ministry.

Trump, however, announced a new trade deal with Tokyo last month with tariffs expected to fall to 15%, though the timeframe for the change remains unclear.

Auto exports to the U.S. are a cornerstone of Japan’s economy, making up about 24% of its global auto shipments in 2024, Japan’s customs data showed.