Toyota lifts profit forecast despite U.S. tariff pain
Toyota has boosted its full-year profit outlook, signalling confidence that strong performance in global markets can offset mounting losses in the United States driven by new import tariffs.
The world’s largest automaker now expects operating profit to reach 3.4 trillion yen ($22.6 billion) in the fiscal year ending March 2026 — a 6% increase from its previous forecast of 3.2 trillion yen, News.Az reports, citing Reuters.
However, the win comes with significant headwinds. U.S. President Donald Trump’s trade tariffs are hitting Japanese carmakers hard, and Toyota estimates the policy will cost the company 1.45 trillion yen this year alone.
“North America is facing a very tough situation due to the impact of tariffs,” said Chief Financial Officer Kenta Kon. Still, he noted that markets across China, Europe, Asia and Africa continue to perform “solidly,” keeping both sales volumes and profitability at healthy levels.
While demand for Toyota vehicles in the U.S. remains strong, the company reported a 134 billion yen loss in its North American business for the first half of the year — its first dip into the red in that region during the period in years.
In contrast, India has emerged as a bright spot, helping cushion the company’s financials. Deputy CFO Takanori Azuma highlighted India’s growing contribution to profits, calling it “increasingly important” as Toyota diversifies away from heavy North American dependence.
A decade ago, nearly half of Toyota’s profits came from the U.S. “If tariffs had become an issue under those circumstances, the impact would have been much greater,” Azuma said.
Despite tariff pressures, Toyota’s global manufacturing momentum remains solid. The automaker recently reported over 10% growth in worldwide production in September, marking four straight months of rising output.
Still, investors reacted cautiously. Toyota’s stock closed down 3.65%, underperforming the broader Nikkei, which fell 2.5%.
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