The automaker said that it has set aside 180 billion Japanese yen ($1.7 billion) for just two months of U.S. tariffs. It now expects net income to drop nearly 35 per cent in the next fiscal year to 3.1 trillion yen, falling short of the nearly 3.7 trillion yen expected by analysts, according to data from Visible Alpha. (The Logic)

Talking point: Toyota does not plan to hike prices “hastily,” chief financial officer Yoichi Miyazaki said in a press briefing. But CEO Koji Sato said that the company plans to make more vehicles domestically as a response to U.S. tariffs, while maintaining its local production in Japan. Miyazaki said there was a last-minute surge of demand in April in the U.S., which will create “pluses and minuses” for the company. Its strategy this year will be closely watched in Canada, where Toyota is the biggest auto manufacturer and has not announced any changes to local production plans in response to tariffs.