Toyota Drops as Full-Year Outlook Signals Tariff Hurdles Remain

Toyota Motor Corp.’s shares dropped the most since April after the carmaker’s annual profit guidance disappointed investors, a sign that the impacts of US President Donald Trump’s tariffs are still weighing on its bottom line.

The world’s biggest carmaker said Wednesday it expects ¥3.4 trillion ($22 billion) in operating income for the fiscal year ending March 2026. That’s up from its previous forecast of ¥3.2 trillion, though it fell short of estimates for ¥3.9 trillion, prompting shares in Tokyo to fall as much as 5%.

While Toyota sought to paint a more optimistic view for the rest of ...