Honda Profits Plunge Amid Trump Tariffs, Yen Surge

Honda Motor has forecast that its net profit will fall by 59–70% for the fiscal year ending March 2026, as it faces the impact of President Donald Trump's tariffs on foreign-made cars and a stronger yen. The company expects operating income of ¥500 billion ($3.38–3.4 billion), which is significantly lower than last year’s ¥1.21 trillion and below analyst estimates. The tariffs are creating major challenges for Japan’s auto industry, with Toyota also projecting a 35% profit decline. Honda has paused its planned EV supply chain project in Canada for about two years due to these headwinds and a slowdown in electric vehicle demand. The situation underscores growing economic risks for Japan, where auto exports are a key economic driver. The developments reflect broader concerns about the effects of Trump’s trade policies on global business and economic growth.