Honda reports declining profit as Trump’s tariffs and EV moves hurt Japanese automaker’s results

TOKYO — Honda reported Tuesday a 42 percent drop in profit for the nine months through December, compared to a year earlier, as U.S. President Donald Trump’s tariffs hurt the Japanese automaker’s earnings.

Tokyo-based Honda Motor Co.’s profit over the three quarters totaled 465.4 billion yen ($3 billion), down from 805.2 billion yen.

That marked the second straight year that profit declined during the period at Honda, the maker of the Accord sedan, Civic compact and Odyssey minivan.

Sales for the three quarters dipped 2.2 percent to 15.98 trillion yen ($102.6 billion) from the previous year. Honda stuck to its full fiscal year profit forecast at 300 billion yen ($1.9 billion).

The slowdown in electric vehicles in the U.S. market was one negative factor, according to Honda, while the relatively healthy performance in its motorcycle division worked as a plus.

Honda lowered its global EV sales ratio projection for 2030 to 20 percent from its previous target of 30 percent. It also said it canceled the development of some EV models, because the EV market was changing.

The Trump administration, which has favored the oil and gas industry, has backpedaled on prior programs supporting the proliferation of EVs, dismantling programs that kicked in during the Biden administration, which had encouraged environmentally cleaner cars and trucks.