Toyota Sees Profit Drop as US Tariffs, M-E War Bite

Japanese auto giant Toyota forecast Friday a 22 percent fall in net profit in the year to next March, as it struggles with the effects of US tariffs and the Middle East war.

The world’s largest automaker by vehicle sales made the announcement as it revealed net profit fell 19.2 percent to 3.8 trillion yen ($25 billion) in the 2025-26 fiscal year.

Revenues last fiscal year rose 5.5 percent to 50.7 trillion yen, and for the current period it projected them to hit 51.0 trillion yen.“Despite the impact of US tariffs... we secured profits consistent with our guidance due to increased vehicle sales volumes and the effects of price revisions underpinned by strong product competitiveness, as well as steadily accumulated improvement efforts such as expanded value chain revenues,” Toyota said.

Japan agreed to invest $550 billion in the US by 2029 in return for lowering threatened tariffs of 25 percent to 15 percent.

The promises remain valid even after the US Supreme Court struck down US President Donald Trump’s global tariffs in February and he imposed a new blanket 10 percent duty.The levies remain painful for firms like Toyota, even though it hs substantial manufacturing capacities in the US.