Toyota Motor Corporation has forecast a 21% decline in profits for the current financial year, attributing this to the adverse effects of tariffs imposed by former US President Donald Trump and the strengthening yen. The company anticipates operating income to reach 3.8 trillion yen ($26 billion) by March 2026, compared to 4.8 trillion yen in the previous fiscal year. This aligns closely with analysts’ projections of 4.75 trillion yen.
Toyota’s profit reduction is driven by factors such as a stronger yen, rising material costs, and tariff impacts. The automaker warned that Trump’s tariffs could lead to broader economic repercussions, affecting consumer sentiment globally. Additionally, Toyota may encounter higher labor costs and increased investment requirements if it expands its US production facilities. Despite challenges, Toyota’s vehicle sales in China have fared better than those of other Japanese automakers, though it continues to face stiff competition from local brands.
— new from CNN