Japan’s biggest carmakers are looking at a hit of more than US$19 billion (RM81.5 billion) from US President Donald Trump’s tariffs that have left the global auto industry reeling.The industry’s top brands warned of a weaker financial performance this year, or withheld guidance altogether, as they tallied up the potential cost of Trump’s ever-changing policies on imports of cars and auto parts. The impact is likely to linger for years as the uncertainty spurs carmakers to re-think their North American investment and production.
Toyota Motor Corp, the world’s biggest carmaker, is likely to be the worst hit. It said last week it expects a ¥180 billion (US$1.2 billion or RM5.3 billion) impact to operating income in April and May alone. The figure could be as much as US$10.7 billion for the whole fiscal year, according to Bloomberg Intelligence. Pelham Smithers analyst Julie Boote forecasts between US$5.4 billion and US$6.8 billion.
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