Toyota Suppliers Face Tariff Costs with Price Hikes and Logistics Changes

Toyota suppliers such as Denso, Toyota Industries, and Aisin are assessing price hikes and logistics changes to mitigate the impact of US tariffs on imported cars and auto parts. Denso saw a ¥12.5 billion hit to operating profit in Q1 and estimates the full-year impact may be ¥130 billion, but expects to mitigate this through measures including price adjustments. The companies will discuss cost passing with clients.

Toyota suppliers such as Denso, Toyota Industries, and Aisin are taking proactive measures to navigate the challenges posed by US tariffs on imported cars and auto parts. These suppliers are assessing potential price hikes and logistics changes to mitigate the financial impact of these tariffs. Denso, a leading auto parts supplier to Toyota, reported an 11% decline in first-quarter profit, primarily due to U.S. tariffs and a stronger yen [1]. The company expects the full-year impact to be ¥130 billion but anticipates mitigating this through price adjustments and other measures [1].

Denso's Chief Financial Officer, Yasushi Matsui, stated that the company is exploring ways to partially offset the impact of tariffs, such as producing certain components in the U.S. [1]. Similarly, other Toyota suppliers are evaluating strategies to manage the cost implications of tariffs and ensure the continuity of their supply chains.

The broader automotive industry is also feeling the pressure. Procter & Gamble, for instance, expects to incur $1 billion in additional costs due to President Trump's tariffs, which will likely be passed on to consumers in the form of higher prices [2]. Ford Motor Company reported a narrow loss in the second quarter, attributing part of the loss to tariff-related costs, with an estimated full-year impact of $2 billion [3].

As the companies navigate these challenges, they will likely engage in discussions with their clients to determine how to pass on the increased costs. This could involve price adjustments, changes in product offerings, or other strategic measures to maintain profitability while complying with tariff regulations.

References:
[1] https://www.reuters.com/markets/asia/toyota-supplier-densos-quarterly-profit-falls-tariffs-strong-yen-2025-07-31/
[2] https://www.10news.com/politics/economy/procter-gamble-projects-1-billion-hit-from-trumps-tariffs
[3] https://bilyonaryo.com/2025/07/31/ford-reports-loss-as-it-sees-2025-tariff-hit-of-2-billion/mobility/