The tariffs imposed by US President Donald Trump are hurting Toyota – badly. For the fiscal year ending March 2026, the Japanese automotive juggernaut believes its net profit could fall by as much as 34.9% and is also bracing for a plunge of its operating profit of over 20%. However, there’s a sliver of good news, and that’s that it won’t increase prices, at least not in the short term.
In its most recent financial report released on May 8, Toyota revealed that operating profit will drop 20.8% to 3.8 trillion yen, or ~$26 billion, in the next fiscal year ending in March 2026. By comparison, its operating profit for the fiscal year that just passed was 4.8 billion yen. A near-30% drop in net profit to 3.1 trillion yen (~$21.5 billion) also spells trouble for the company.
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