Toyota warns of $9.5b tariff hit, slashes annual profit forecast

TOKYO, Aug 07 (Reuters): Japan's Toyota Motor said on Thursday it expected a hit of nearly $10 billion from President Donald Trump's tariffs on cars imported into the United States, the highest such estimate yet by any company, underscoring growing margin pressures.
The world's top-selling car maker also cut by 16 per cent its forecast for full-year operating profit, reflecting challenges for global manufacturers grappling with rising costs from US levies on cars, parts, steel and aluminium.
"It's honestly very difficult for us to predict what will happen regarding the market environment," Takanori Azuma, Toyota's head of finance, told a briefing, vowing to keep making cars for US customers, regardless of tariff impact.
Azuma said the 1.4 trillion yen ($9.50 billion) estimate also includes fallout suppliers are facing, particularly those in the US importing parts from Japan, though he declined to say how much of the total was attributable to that.
Rivals have reported smaller tariff hits so far: GM has projected one of $4 billion to $5 billion for the year, while Ford expects a $3-billion hit to full-year gross revenues.
Jeep maker Stellantis said tariffs were expected to add $1.7 billion in expenses for the year.