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Toyota cites tariffs as it forecasts 35% drop in 2025-26 net profit

  • Toyota forecast a 35 percent drop in net profit for the 2025-26 financial year due to tariffs and other factors.
  • The forecast reflects tariffs imposed by President Trump, including a 25 percent duty on imported vehicles and auto parts.
  • Toyota logged a net profit near 4.8 trillion yen in the past year but expects impacts on operating profit estimated at 180 billion yen this fiscal year.
  • Trump's executive order limits overlapping levies to one 25 percent tariff, with a two-year grace period to encourage supply chain relocation to the US.
  • The profit decline signals challenges from tariffs and higher costs, while Toyota remains the world’s top-selling automaker with 10.8 million vehicles sold in 2024.
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Kyodo News+ broke the news in Japan on Thursday, May 8, 2025.
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