Toyota Motor is facing challenges due to US/Japan trade war and potential tariff hikes

Toyota Motor Company is a leading automaker with a broad product portfolio, including hybrid cars that make up nearly half of sales. However, the company is caught in the crosshairs of the US/Japan trade war, facing potential tariff hikes that could impact profit margins. With a 20.8% contraction in year-over-year profit margins, Toyota is feeling the effects of material prices and US-imposed tariffs. As a result, Toyota’s stock is exhibiting relative price weakness, trading below the 200-day moving average and underperforming the S&P 500 Index. The looming tariff deadline and Trump’s aggressive stance on trade pose significant challenges for Toyota’s future profitability.

Read more at Zacks Investment Research: Bear of the Day: Toyota Motor (TM) – July 4, 2025