Toyota profits fall for a second consecutive quarter, missing estimates as U.S. tariffs hit exports

Toyota Motor Corporation reported a disappointing quarter ending in September, missing operating profit expectations as it grapples with the impact of U.S. tariffs. The world’s leading automaker by sales volume revealed a staggering nearly 28% drop in profit compared to the same period last year, even as revenue saw an increase of over 8%. In the six-month results from April to September, the figures have been analyzed based on the company's statements and data from LSEG. This marks the second consecutive quarter of declining profits for Toyota, largely attributed to the reciprocal tariffs imposed by the U.S. in April. In response to these trade challenges, Tokyo secured a deal in July that reduced tariffs on Japanese exports to the U.S. from 25% to 15%, a change that took effect on August 7. Despite this reduction, Japanese automobile exports to the U.S. have been significantly impacted, with a sharp 24.2% decline in value in September, a slight improvement from the 28.4% drop recorded in August. Nevertheless, Toyota continues to thrive amidst the tariff turbulence, bolstered by robust global demand for its vehicles. The company recently announced that its total vehicle sales, which include the luxury Lexus brand, reached 5.3 million units from April to September, reflecting a 4.7% year-over-year increase.