Japanese automaker Toyota's operating profit declined year-on-year in the April-June quarter due to "the impact of US tariffs and other factors," but still exceeded market forecasts. This is shown by the financial results.

The company's operating revenue for the quarter fell 10.9% year-on-year to $7.87 billion, with Toyota attributing its $3 billion loss to higher US tariffs.

Despite the decline, operating revenue exceeded market forecasts, according to the Anadolu Agency.

The company's net income also fell 36.9% year-on-year to $5.71 billion.

Toyota also revised its full-year operating profit forecast by $4 billion to $21.72 billion.

"Due to the impact of US tariffs and other factors, actual results showed a decrease in operating profit and the forecast was revised downward," Toyota said.

On the other hand, the Japanese automaker's sales revenue increased 3.5% year-on-year to $83.17 billion for the April-June period.

"Despite the challenging external environment, we continued to make comprehensive investments and improvements such as increasing sales, reducing costs, and expanding profits from the value chain, thereby minimizing the negative impacts," the company said.

Japanese automakers have been struggling since the US imposed a 25% tariff on car imports in April.

According to data from the Japanese Ministry of Trade, the value of Japanese car exports to the US fell by 25.3% year-on-year in June, despite a 4.6% increase in the volume of car exports to the country during the same period.

On the other hand, the Trump administration recently reduced reciprocal tariffs on Japanese goods to 15%, but it is still unclear when the new rate will be applied.

Japan has committed to increasing its investment in the US as part of a $550 billion initiative under a trade agreement, and the US will reduce the tariff on Japanese car imports from 27.5% to 15%. | BGNES