MW Global growth bellwethers Maersk and Toyota lower guidance on tariff impact

By Jules Rimmer

Danish shipping and logistics giant A.P. Moeller-Maersk and Japanese auto giant Toyota Motor each sounded the alarm on tariffs on Thursday as both lowered their guidance.

Maersk (DK:MAERSK.B) reduced its volume growth estimate to a range of -1% to 4%, from 4% previously - and said it's expecting to grow in line with the market.

The results were delivered as signs of the impact of the tariff announcement are building.

At the port of Los Angeles, where 50% of the traffic originates in China, UBS analyst Cristian Nedeclu anticipates a 5% year-on-year drop-off in May volumes on a four-week rolling basis. Moreover, capacity utilization on incoming ships is estimated at 50% not the more usual 85-90% range.

Maersk stock, as one might imagine given its profile, has mirrored the V-shaped recovery seen in major indices over the month of April but has been sliding into the earnings release and dropped 2% on Thursday.

Toyota $(TM)$ (JP:7203) said Trump's tariffs will cost the automaker 180 billion yen ($1.2 billion) in April and May alone. Its forecast of 3.8 trillion yen operating profit this year - vs. 4.8 trillion yen in the March-ending fiscal year- fell short of the 4.7 trillion yen consensus.

Toyota's warning coincided with a similar alarm sounded by Mitsubishi Motors and follows on from other auto companies like Mercedes-Benz, Volvo and Ford which withdrew their guidance completely and GM which predicted a $5 billion hit for 2026.

Toyota stock fell 2% in premarket trade. The ADRs have slipped 3% this year.

-Jules Rimmer

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May 08, 2025 05:42 ET (09:42 GMT)

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