Toyota Motor Corp. reported a 7 percent decline in profit for the April–September period, with U.S. President Donald Trump’s auto tariffs weighing heavily on Japan’s largest carmaker. The automaker’s net profit came in at 1.77 trillion yen ($11.5 billion), down from 1.9 trillion yen a year earlier, according to figures released Wednesday.
Despite the setback, Toyota raised its full-year profit forecast for the fiscal year ending March 2026 to 2.93 trillion yen ($19 billion), up from an earlier estimate of 2.66 trillion yen ($17 billion). The company credited stronger vehicle sales, improved model mix, and cost-cutting measures for the revision. However, the new forecast still represents a steep 38.5 percent drop compared to last year’s record 4.77 trillion yen profit.
U.S. tariffs on Japanese vehicles and auto parts — initially imposed at 27.5 percent and later reduced to 15 percent — have sharply reduced Japan’s exports to the American market. Even so, Toyota managed to post higher sales in both the U.S. and Japan. The company sold more than 1.5 million vehicles in North America and 970,000 in its home market during the first half of the fiscal year.
First-half sales rose 5.8 percent to 24.6 trillion yen ($160 billion). For the July–September quarter alone, Toyota’s profit jumped 62 percent to 932 billion yen ($6 billion) on sales of 12.38 trillion yen ($80 billion), up 8 percent from a year earlier.
“Despite the impact of U.S. tariffs, we have continued to strengthen our fundamentals through higher sales, cost efficiency, and an expanded value chain,” Toyota said in a statement.