Overview

• Toyota expects a 21% decline in operating income for fiscal 2025–26, driven by $1.6 billion in U.S. tariff costs and 745 billion yen in currency-related losses.
• The company has revised its profit forecast to 3.8 trillion yen, significantly below analyst expectations of 4.7 trillion yen.
• Short-term U.S. sales rose 7.7% in March as consumers rushed to buy vehicles ahead of tariff-driven price increases.
• Toyota is exploring medium- to long-term expansion of local production and development in the U.S. to mitigate trade risks.
• Despite challenges, the automaker predicts global sales will rise slightly to 11.2 million units this fiscal year, bolstered by strong demand for electrified vehicles.