Toyota Motor Corp. recorded its highest-ever global sales in the first half of 2025, despite economic uncertainty sparked by former President Donald Trump’s 25% tariffs on imported cars to the US.

The automaker, including its subsidiaries Daihatsu and Hino, sold over 5.5 million vehicles between January and June, a 7.4% increase from the previous year. Production rose by 8.8%, including a nearly 20% jump in domestic manufacturing.

A rush by US buyers to finalize purchases before tariffs came into effect helped boost early-year performance. Japan’s new trade agreement with the US, which limits duties to 15%, further softened the blow.

In June alone, Toyota’s global sales rose 2.7% to 937,246 units, while production increased 7.7% to 963,455 vehicles.

However, competition is intensifying. EV makers like Tesla and China’s BYD are putting pressure on legacy brands. While hybrid demand is strong, Toyota has sold only around 82,000 battery EVs this year — mostly outside Japan.

Meanwhile, rivals Honda and Nissan reported declines: Honda’s June sales fell 8% to 285,479 units, and Nissan’s dropped 5% to 262,133.