Toyota Raises Profit Forecasts Despite US Tariff Challenges

Japanese automotive giant Toyota announced on Wednesday that it had raised its operating income and net profit forecasts for the current fiscal year, despite the ongoing impact of US tariffs.

“Despite the impact of US tariffs, we have continued to build upon our improvement efforts, such as increasing sales volume, improving costs, and expanding value chain profits,” the company said in a statement.

“We are steadily translating comprehensive future investments into improved productivity and increased returns, with a strong focus on improving the breakeven volume,” Toyota added.

For the fiscal year ending March 2026, Toyota now expects operating income of 3.4 trillion yen ($22.1 billion), up from its previous forecast of 3.2 trillion yen. Net profit is projected to reach 2.9 trillion yen, compared with an earlier estimate of 2.7 trillion yen.

The company also revised its sales forecast, now expecting 49.0 trillion yen for the year, up from the August projection of 48.5 trillion yen.

The world’s largest carmaker by unit sales had previously cut its guidance in August, citing the effects of US tariffs and other factors. At that time, Toyota had lowered its operating income projection from 3.8 trillion yen to 3.2 trillion yen, and net income from 3.1 trillion yen to 2.7 trillion yen.

The US-Japan trade agreement reached in July reduced tariffs on Japanese goods from a threatened 25 percent to 15 percent. Japanese cars had previously been taxed at a higher rate of 27.5 percent, with the reduction only taking effect in mid-September.

In September, the value of Japan’s US-bound car exports fell 24 percent year-on-year, dealing a significant blow to an automotive sector that accounts for roughly eight percent of employment in the country.