Toyota found itself in the crosshairs of trade tension this week, warning that potential new U.S. tariffs could threaten its export outlook and weigh on future earnings. The automaker, which relies heavily on U.S. consumers, said shifting trade policies might disrupt production schedules and increase costs across its global supply chain. The warning came after a robust quarter marked by steady sales in Asia and North America, but management noted that lingering uncertainty about tariffs could dent its profit margins if import duties rise. Shares slipped modestly as investors assessed how deeply U.S. trade decisions might impact one of the world’s most stable carmakers.

Toyota’s situation underscores a growing challenge for automakers navigating an increasingly protectionist global trade environment. Even as the company pushes toward electric-vehicle expansion and efficiency improvements, policy shifts remain a wild card. Analysts believe Toyota’s strong balance sheet and brand loyalty can buffer short-term disruptions, but further escalation in tariffs could force price hikes or production changes. For now, the company is focusing on maintaining stability in key markets while advocating for open trade channels a balancing act that’s as much diplomacy as it is business strategy.