Toyota Motor's (NYSE:TM) profit slumped 37% in the most recent quarter as US tariffs sharply affected earnings.
Net income fell to $5.7 billion, down from $8.9 billion the previous year, despite a 3% increase in sales to $82 billion.
The company said tariffs on Japanese exports to the US cost $3 billion in operating profit for the quarter. Additional pressure came from currency movements and higher costs.
Toyota now forecasts full-year profit of $18 billion, down from an earlier estimate of $21 billion.
The company, which sold 2.4 million vehicles globally in the quarter, said it continues to face uncertainty over US trade policy, with tariffs on Japanese exports currently at 15%.
Despite robust sales growth in major markets, Toyota warned that higher tariffs would remain a significant challenge in the months ahead.