Toyota cites tariffs as it forecasts 35pc net profit drop

TOKYO, May 08 (AFP): Japanese auto giant Toyota forecast on Thursday a 35 per cent year-on-year drop in net profit for the current financial year, citing Donald Trump's vehicle tariffs among other factors.

Carmakers have been among the hardest hit by the US president's multi-pronged assault on free trade.

On top of a 25 per cent tariff already placed on finished imported cars, the Trump administration on Saturday imposed a similar duty on auto parts including engines and transmissions.

For the 2025-26 financial year that began in April, Toyota now forecasts net profit of 3.1 trillion yen ($21.6 billion).

"The estimated impact of US tariffs in April and May 2025 have been tentatively factored in," the world's top-selling automaker said in a statement.