Toyota forecasts 35 pct drop in 2025-26 net profit due to tariffs

TOKYO

Japanese auto giant Toyota on Thursday forecast a 35 percent year-on-year drop in net profit for 2025-26 citing Donald Trump's vehicle tariffs among other factors.

On top of a 25 percent tariff already placed on finished imported cars, the Trump administration last week imposed a similar duty on auto parts including engines and transmissions.

For the current financial year that began in April, Toyota now forecasts net profit of 3.1 trillion yen ($21.6 billion).

"The estimated impact of U.S. tariffs in April and May 2025 have been tentatively factored in," the world's top-selling automaker said in a statement.

The company logged net profit of nearly 4.8 trillion yen in the 12 months to March, down 3.6 percent year-on-year.

As of this month, it estimated the tariffs would impact 2025-2026 operating profit to the tune of 180 billion yen.

Toyota sold 10.8 million vehicles worldwide in 2024, holding onto its crown as the world's top-selling automaker.

Toyota is the second-top-selling automaker in the United States, where it shifted more than 2.3 million vehicles last year, while U.S. industry leader General Motors sold just 587 Chevrolets and 449 Cadillacs in Japan.

"They don't take our cars, but we take MILLIONS of theirs!" Trump said in April, accusing Japan of treating its ally "very poorly on trade".