Toyota Motor Corporation forecast on May 8, 2025, a 21% profit decline for the current financial year. This significant reduction in profit outlook is attributed to the strain from U.S. President Donald Trump's tariffs and an appreciating yen.
The combination of increased import costs due to tariffs and unfavorable currency exchange rates is expected to significantly impact Toyota's profitability. This forecast dampens the positive momentum from strong hybrid demand.
This revised guidance signals substantial headwinds for the company's financial performance in the coming year. Investors will closely monitor how Toyota navigates these macroeconomic and trade-related challenges to mitigate the projected profit decline.
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