Tariffs went up. Paperwork started looking ugly for all importing brands. Yet Toyota just told investors it expects to make more money this year. That only happens when cars are leaving lots fast and the math still works. The signal is clear: hybrids are doing the heavy lifting, and buyers aren’t blinking.
The 15% Tariff Deal That Changed Everything
A summer U.S.–Japan deal set a 15% baseline tariff on most Japanese imports, including autos and parts. It replaced steeper emergency rates and took effect in mid-September. That’s still a tax on the way in, but it’s not a 25%+ cliff. It gave Toyota room to keep volume moving while squeezing costs somewhere else.
In North America, the bill still hurt. Toyota posted a first-half operating loss here. Even so, the company raised its full-year operating profit outlook to about ¥3.4 trillion. Translation for normal humans: demand is outrunning drag.
Half of Toyota’s U.S. Sales Are Now Hybrids—Here’s Why
Walk a dealer lot and you’ll see the pattern: RAV4 Hybrid, Camry Hybrid, Corolla Hybrid, Prius. In the U.S., electrified models were roughly half of second-quarter sales. These are quiet off the line, easy to drive, and they save real money every tank. That’s how a balance sheet shrugs off tariffs — move high-demand metal that owners brag about at the pump.
Globally, Toyota’s production kept climbing through early fall, with sales up for months on end. Put simply: the factory lights are on because customers keep showing up.
What This Means for Your Next Toyota Purchase
Don’t expect panic – read great – pricing. Toyota has room to keep leases sane and inventory flowing into winter. Some trims will be tighter than others, sure. But hybrids remain the sweet spot for fuel economy, ride comfort, and confident handling without any charging routine. Rivals know it, which tends to keep deals honest.
Edmunds
The Bottom Line: Demand Beats Tariffs Every Time
Ignore the stock-market noise. Toyota raises profit forecast because the cars people actually want keep doing their jobs: start every morning, sip fuel, soak up bad roads, cost less to run. Trade fights live on spreadsheets. Your commute lives in the seat and the tires.
