TOKYO (Reuters) -Toyota Motor ( TM ) cut its full-year operating profit forecast by 16% on Thursday as an appreciating yen and higher U.S. import tariffs weighed on its financial results.

The world's biggest automaker cut its full-year operating profit forecast to 3.2 trillion yen ($21.7 billion), down from a previous outlook of 3.8 trillion yen, on the heavy fallout from the tariffs, higher material prices and currency fluctuations.

Toyota ( TM ) said it expects the U.S. levies to reduce its profit by 1.4 trillion yen for the entire fiscal year. It had previously estimated a hit of 180 billion yen for April and May, but it had not issued a full-year projection until now.

For the April to June first quarter, Toyota ( TM ) reported an operating profit of 1.17 trillion yen, down from 1.31 trillion yen a year earlier, but above the 902 billion yen average of seven analyst estimates compiled by LSEG.

($1 = 147.2300 yen)