Honda (HMC.US) expects tariffs to cause a 59% plunge in annual profits, delaying investment plans for electric vehicles in Canada.

According to the Wise Finance APP, Honda Motor Co. (HMC.US) stated that due to the impact of Trump's tariff increases and the strengthening of the yen which offset the profits brought by the demand for its hybrid models, it is expected that the profit for this fiscal year will decrease by 59%, that is, the annual profit will reduce by 450 billion yen (30 billion US dollars). The company currently expects its operating profit for the fiscal year ending March 31, 2026 to reach 500 billion yen (34 billion US dollars), while the market estimate is 1.35 trillion yen, compared to 1.21 trillion yen for the just ended fiscal year. Honda also expects sales net revenue for this fiscal year to be 20.30 trillion yen, a decrease of 6.4% compared to the previous year, with the market estimate being 21.59 trillion yen. At the same time, the company has decided to postpone by about two years the plan announced on April 25 last year to establish a comprehensive electric vehicle value chain in Canada.