Toyota Motor is bracing itself for a bumpy year, with the Japanese carmaker warning of a slump in profit as global manufacturers scramble to shield themselves from US President Donald Trump’s tariff turmoil.
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The company forecasts operating income of ¥3.8 trillion (US$26 billion) for the year ending March 31, 2026, it said Thursday, falling far short analyst expectations of ¥4.7 trillion. The figure compares with ¥4.8 trillion a year earlier and a record ¥5.35 trillion during the 2024 financial year – an all-time high for any Japanese company.
The cautious outlook follows a lukewarm finish to the latest financial year, with profit up 0.3 per cent to ¥1.1 trillion in the fourth quarter on a steady recovery in sales in the US, Japan and China.
Toyota said it’s tentatively factored in a ¥180 billion hit to profit over April and May from US tariffs. It joins the growing number of carmakers, dealers and auto parts suppliers that have been whipsawed by Trump’s ever-changing trade strategy.
Last week, Trump offered some relief to the industry by signing a directive that would exempt imported automobiles from separate tariffs on aluminium and steel. That came alongside a separate proclamation that allows carmakers that produce and sell completed automobiles in the US to claim an offset worth up to 3.75 per cent of the value of American-made vehicles – a reprieve from the 25 per cent tariff on imported parts that took effect May 3.
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