Toyota Motor Corp. has projected a decline in operating income to 3.8 trillion yen (US$26 billion) for the fiscal year ending March 31, 2026.

The sharp drop from 4.8 trillion yen (US$30.72 billion) last year reflects mounting pressure from US tariffs, which are expected to shave 180 billion yen (US$1.25 billion) off profits in April and May alone.