Toyota Motor announced in a forecast revision an expected 1.4 trillion yen decrease in operating profits for fiscal 2025.

Net profits are also expected to drop 44.2% from the previous fiscal year to an estimate of 2.66 trillion yen.

The revision is directly due to the effects of US tariffs on cars and car parts negotiated with the Trump administration.

An agreement between Japan and the US resulted in lowering additional tariffs on vehicles to 15% from the previously proposed 25%. However, a timeline for when the deal would go into effect has not been announced.

Toyota said that it was grateful to the country for negotiating a difficult deal but wishes for another decrease as a 15% tariff is not an insignificant number.