Toyota Motor Corp. has cut its full-year operating profit forecast by 16%, anticipating a $9.5 billion hit due to U.S. tariffs on imported vehicles. The company also faces challenges from higher material costs and a stronger yen. This revision lowers Toyota's projected net profit for the fiscal year ending March 2026 to approximately $18 billion, down from previous estimates. The operating margin forecast has been reduced to 6.6% from an earlier 7.8%, and significantly below the 10% margin recorded in fiscal 2025. In the first quarter, Toyota's net profit declined by 37%, reflecting the impact of the tariffs. The U.S. tariffs, which took effect in April 2025, have disrupted the global automotive industry and affected several Japanese companies, contributing to a 12% drop in net profits across the sector.