Honda Reports Declining Profit Due to Trump’s Tariffs and EV Moves

Honda has reported a 42% drop in profit for the nine months through December compared with a year earlier, as US President Donald Trump’s tariffs hurt the Japanese automaker’s earnings, Yuri Kageyama reported for the Associated Press (AP).

Honda's sales dipped 2.2% to 15.98 trillion yen ($102.6 billion). (Photo: Honda Facebook)

Tokyo-based Honda Motor Co.’s profit over the three quarters totaled 465.4 billion yen ($3 billion), down from 805.2 billion yen. It marked the second straight year that profit declined during the period.

Sales dipped 2.2% to 15.98 trillion yen ($102.6 billion). Honda maintained its full fiscal-year profit forecast at 300 billion yen ($1.9 billion).

The slowdown in electric vehicle sales in the US market was a negative factor, while stronger performance in its motorcycle division helped offset losses.

Honda lowered its global EV sales ratio projection for 2030 to 20% from its previous target of 30% and said it canceled development of some EV models as the market shifts.