Tariffs Threaten to Slice a Fifth off Toyota’s Annual Profit

Tariffs in April and May will cost Toyota about $1.2 billion, pushing its annual profit forecast down by one‑fifth.

Cars outside a Toyota car showroom in Stockport, England, on May 26, 2020. Jason Cairnduff/Reuters/ File Photo

Toyota Motor Corporation says fresh U.S. import tariffs and an unfavorable exchange rate will sharply reduce earnings this year, even as vehicle sales rise.

The company expects operating income of 3.80 trillion yen (about $26 billion) in the 12 months ending March 2026. That is 21 percent lower than the 4.8 trillion yen ($31 billion) that the company earned in the year that ended March 2025.