Toyota Motor Corp. slashed its full-year earnings outlook after warning that higher U.S. import duties on Japanese cars will cut operating profit by about ¥1.4 trillion (US$9.5 billion). The company now expects net profit of ¥2.66 trillion for the fiscal year ending March 2026, 44% below last year’s level and down from a ¥3.1 trillion projection issued in May. First-quarter results already reflect the strain. Net profit for April–June fell 36.9% year on year to ¥841 billion as shipments faced the tariff that Washington raised in April. Toyota lowered its targeted operating margin to 6.6% from 7.8%, far below the 10% achieved in fiscal 2025, and said it will rely on cost cuts, price adjustments and expanded North American production to offset the blow. The revision underscores the broader toll of U.S. trade measures on the global auto industry. Nikkei Asia calculates that Japanese listed firms’ combined net profit slipped 12% in the latest quarter, with automakers and steelmakers hardest hit. In Europe, exporters remain in limbo as Brussels awaits a White House order to cap car tariffs at 15%, leaving manufacturers and shippers facing the higher 27.5% rate for now.