Toyota, the world's largest automaker, is the latest carmaker to revise its forecast downward, due to the trade war started by the White House.
The company's current forecast for the fiscal year ending March 31, 2026, (assuming average exchange rates through the fiscal year of 145 yen per US$1) assumes that the impact of U.S. tariffs will slash operating income for April and May, tentatively, by $1.24 billion (180.0 billion yen).
For the full fiscal year outlook, which ends at the end of next March, the company forecasts a 20.8% decrease in operating income and a 34.9% decrease in net income for the Toyota Motor Corporation because of tariffs and the ensuing weakness in the U.S. dollar. Chief Executive Koji Sato said Thursday that tariff developments are fluid and it is difficult to project further.
Toyota, which does manufacture some cars in the US, as well as Mexico and Japan, faces a 25% tariff on the ones it doesn't make in the US and outside of the USMCA trade agreement and on auto parts.
-ABC News' Soo Youn