Honda expects a 59% drop in profit in the current fiscal year, and the impact of US tariffs has delayed its electric vehicle plans in Canada.

Japanese automaker Honda predicts a significant 59% decrease in profits for the current fiscal year and has announced the suspension of plans to build an electric vehicle supply chain in Canada, primarily due to the uncertainty brought by US President Trump's tariff policies. The second largest Japanese automaker expects its operating profit for the fiscal year ending in March 2026 to drop to 500 billion yen, a significant decrease from the 1.21 trillion yen of the previous fiscal year ending in March of this year. Honda's latest forecast reflects the serious challenges automakers are facing under the dual pressure of the Trump administration's tariffs on imported cars and the rise of electric vehicle manufacturers. Additionally, Honda stated that it will postpone the plan to build an electric vehicle supply chain in Ontario, Canada that was announced in April 2024, for "approximately two years." The company cited the current market environment of slowing demand for electric vehicles as the basis for this decision.