Honda predicts a 59% drop in profits for the current fiscal year due to new tariffs imposed by U.S. President Donald Trump, reports Reuters. The company is also suspending plans to build an electric vehicle supply chain in Canada.

Japanese car manufacturer Honda Motor announced on Tuesday that it anticipates a substantial 58.8 percent decrease in operating income for the ongoin

The Japanese automaker confirmed it would cut 11,000 more jobs and slim down production.Nissan also saw its profit almost wiped out in the year that just ended.Operating profit hit $472 million in the 12 months to March - a decline of 88% from the previous year.

Honda projects an even steeper drop, seeing a 70.1 percent decline in net profit to 250 billion yen for the current fiscal year. The automaker blamed both US tariffs and exchange rate volatility, warning that the tariff impact and recovery efforts will have a negative effect on operating profit.

Japan’s Honda Motor on Tuesday forecast a 70 per cent drop in net profit for the 2025-26 financial year as US trade tariffs weigh on the global auto

The automaker’s somber forecast for the fiscal year underscored how quickly fortunes had turned for many companies reckoning with President Trump’s tariffs.

Nissan unveiled sweeping new cost cuts Tuesday, saying it would eliminate 11,000 more jobs and scale back production, capping a tumultuous year that has left the Japanese automaker fighting to turn itself around.

All three of Japan’s largest carmakers are struggling with tough market conditions in the world’s two largest economies. In the U.S., tariffs have roiled their global supply chains, and in China, they face competition from domestic car companies that sell next-generation electric vehicles at cutthroat prices.