“Due to the impact of US tariffs and other factors, actual results showed decreased operating income, and the forecast has been revised downward,” the company said in a statement.

Its shares fell 0.6% in Tokyo afternoon trade.

The Trump administration in April imposed a 25% levy on Japanese cars imported into the US, dealing a hefty blow to Japan and its crucial auto sector.

Although Tokyo and Washington announced a trade deal in July, lowering that rate to 15% and providing a degree of relief for the industry, it’s not yet clear when it will take effect.

There is also confusion over whether the car tariff – as well as other “reciprocal” levies – will be capped at 15%, or if these would come on top of those in place before Trump’s trade blitz.

The auto industry had a pre-existing 2.5% tariff, meaning the levy currently stands at 27.5%.

Revenues in Toyota’s first quarter from April to June were up 3.5%, but net income dropped by 36%.