The Japanese carmaker projected lower annual profit after reporting a drop in fourth-quarter earnings, with U.S. tariffs and higher material costs expected to cut into its bottom line.

The automaker’s somber forecast for the fiscal year underscored how quickly fortunes had turned for many companies reckoning with President Trump’s tariffs.

Japan’s top automaker Toyota is reporting record sales for the fiscal year through March, but its profit for the latest quarter faltered partly because of a certification scandal