Tokyo: Japanese auto giant Toyota on Thursday cut its annual net profit forecast to 2.66 trillion yen ($18.06 billion) owing to the impact of US tariffs. “Due to the impact of US tariffs and other factors, actual results showed decreased operating income, and the forecast has been revised downward,” the firm said in a statement. Its shares fell 0.6 percent in Tokyo afternoon trade.
According to Bangladesh Sangbad Sangstha, the decision to lower the profit forecast reflects the challenges Toyota faces amidst rising tariffs imposed by the United States, which have affected its operating income. The revision marks a significant shift from its earlier profit expectations, highlighting the considerable impact of international trade policies on the automotive industry.
Additionally, the reduction in the profit forecast coincided with a slight decline in Toyota’s share price, which fell by 0.6 percent on the Tokyo Stock Exchange. This decrease indicates investor concern over the potential financial implications of ongoing trade tensions between the US and Japan’s leading car manufacturer.