Toyota Motor announced a projected 35% profit decrease for the fiscal year through March 2026 during a financial results press conference on May 8.

The automaker forecasted a 745 billion yen or 5.1 billion dollars drop in operating profit from fluctuating exchange rates and a 350 billion yen or 2.4 billion dollars drop due to soaring material costs as the main causes of decline in profits.

In just the two months of April and May 2025, Toyota expects a 180 billion yen or 1.3 billion dollars decrease in operating profit due to the Trump administration’s additional tariffs placed on automakers.