Toyota, the world’s largest automaker, reports a 450 billion yen ($2.93 billion) hit from tariffs in its fiscal second quarter, totaling 900 billion yen ($5.86 billion) year-to-date. Despite this, revenue for the quarter increased by 8.2% to 12.38 trillion yen ($80.54 billion). Operating income fell by 27.4% to 839.5 billion yen ($5.46 billion).

Toyota raises its full-year tariff projection to 1.45 trillion yen ($9.43 billion) and increases its fiscal year 2026 sales forecast to 49 trillion yen ($318.8 billion), with operating income seen at 3.4 trillion yen ($22.1 billion). The automaker aims to offset tariffs by building more vehicles in America.

President Trump claimed Toyota promised a $10 billion investment in the US during his Asia visit, but Toyota denies explicitly making this guarantee. Toyota emphasizes its commitment to US operations and manufacturing. Maintaining success in North America is crucial for Toyota, its largest market by volume.

Read more at Yahoo Finance: Toyota boosts guidance despite $3B tariff hit, sees nearly $10B in duties for fiscal year