With the tariff situation in the US seemingly calming down a bit, Toyota has finally offered some insight on how much it will hurt the company’s bottom line.

Toyota estimates tariffs in the US will cost it ¥1.4 trillion ($14.5 billion) in this financial year, which ends March 2026. That’s up ¥1.2 trillion ($12.5 billion) from the previous financial year.

The US and Japan recently signed a deal, which will see tariffs on most Japanese imports, including cars and automotive components, reduced to 15 per cent, but it’s unclear when that will come into force.

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Toyota also operates three plants in Ontario, Canada, which make the RAV4, as well as the Lexus RX and NX. The company also has two factories in Mexico which produce the Tacoma ute.

Thanks to an on-going trade war started by President Trump, cars imported from Canada and Mexico are subject to a 25 per cent tariff on components that don’t meet the criteria set out in the United States Mexico Canada Agreement free-trade pact signed during President Trump’s first term.

With Toyota now confident enough to guesstimate how much tariffs will cost, it has issued a prediction for its full year profit, which it believes will fall to 3.2 trillion ($33.2 billion). That’s down ¥1.6 trillion ($16.6 billion) from the financial year that finished March 2025.