Honda's profits are falling sharply: is Trump's economic policy the reason?

Honda Motor Co., one of Japan's largest automakers, is forecasting a 59 percent drop in its current fiscal year profit due to uncertainty over US President Donald Trump's economic policies, Reuters reported.

Honda said it expects to post a profit of about 500 billion yen (about $3.38 billion) in the fiscal year ending in March 2026, down from 1.21 trillion yen in the previous fiscal year.

The company said the decline was due to the uncertainty caused by tariffs and new economic rules imposed by the US. In particular, Honda's management has decided to postpone plans to build a network for the production and delivery of electric vehicles in Canada. The program for the production of new electric vehicles is expected to be suspended for about two years.

According to Honda officials, this decision is being made to reduce unexpected economic risks and maintain its position in the global market. The company also said that at this stage it will focus on modernizing existing production lines and adapting to global demand.

Experts say that a sharp decline in Honda Motor's profits could affect not only the company itself, but also the entire automotive market. Especially at a time when competition in the field of electric vehicle production is intensifying, such decisions will affect future market share.

At the same time, other major automakers are also reviewing their plans in the face of uncertainties associated with US economic policy. This, in turn, may lead to the formation of a new balance in the global automotive industry. Read 'Zamin' on Telegram!