Toyota Motor Corporation reported record global sales for May, with a 6.9% year-over-year increase to 898,721 vehicles, marking its fifth consecutive monthly gain. The surge was fueled by strong demand in key markets such as the United States, China and Japan. U.S. sales alone climbed nearly 11% despite the implementation of 25% auto tariffs by President Donald Trump.
While consumer demand remains strong, Toyota’s global production slipped 0.7% from a year earlier. The automaker attributed the decline, its first in five months, to fewer operating days at its domestic plants in Japan.
Toyota’s sales growth comes at a time when Japan’s automotive sector is under increasing strain from U.S. trade policies. The Japanese government is continuing negotiations with Washington in an effort to secure tariff exemptions for its auto manufacturers. Without a deal, a broader 24% reciprocal tariff is set to take effect on July 9.
Recent trade data highlights the pressure on Japan’s economy. In May, overall exports fell for the first time in eight months, largely due to a 24.7% drop in vehicle shipments to the U.S. and a 19% decline in auto parts exports. These reductions reflect the early impact of the tariffs, which are already reshaping trade flows and putting pressure on Japanese automakers’ global supply chains.
Toyota’s continued sales momentum, especially in North America, suggests the brand is weathering the trade disruptions better than some of its peers. However, with additional tariffs looming and production hurdles at home, the automaker and the broader Japanese auto industry face an increasingly complex operating environment in the months ahead.