Core Viewpoint - Toyota is facing significant challenges due to Trump's trade policies, potentially becoming the biggest loser among global automakers as tariffs on imported vehicles and parts severely impact its profitability [1][2]. Group 1: Financial Impact - General Motors (GM) expects a profit reduction of up to $5 billion, while Ford anticipates a loss of $1.5 billion. In contrast, Toyota has already experienced a $1.2 billion profit decline within two months [1]. - Toyota's operating profit for the fiscal year ending March 2026 is projected to drop to ¥3.8 trillion ($26.1 billion), significantly below analysts' expectations of ¥4.7 trillion [1]. Group 2: Trade Negotiations and Tariffs - Despite over half of its sales in the U.S. being produced locally, Toyota still imports approximately 1.2 million critical parts and vehicles annually, drawing attention from the White House [2]. - The ongoing trade negotiations have not yielded results, and the timeline for a final agreement remains uncertain, with tariffs on most imported vehicles set at 25% and parts at the same rate [5]. - The Japanese government has indicated that a certain unnamed Japanese automaker is losing about $1 million per hour due to tariffs, aligning with Toyota's estimated monthly loss of $1.2 billion based on its operational hours [4]. Group 3: Production and Supply Chain - Toyota has committed to maintaining its production capacity in Japan, with plans to produce 3 million vehicles domestically by 2024, which will account for one-third of its global output [5][6]. - The company has invested $13.9 billion in a new battery plant in North Carolina while also emphasizing its commitment to its extensive domestic production base [5]. - Toyota's supply chain strategy, which includes importing vehicles like the RAV4 and Prius from Japan, makes it a target for U.S. tariffs, linking its fate closely to the outcomes of U.S.-Japan trade negotiations [6]. Group 4: Employment and Investment - Since 2016, Toyota's direct manufacturing employment in the U.S. has increased from 25,000 to 31,000, reflecting its commitment to local investment [6]. - The company has pledged $21 billion in investments in the U.S. since 2020, nearly double its commitments during Trump's first term [6].