Honda Delays Canada EV Plant Amid Tariffs, Losses

Honda Motor has sharply revised down its profit forecasts, expecting net income to drop by 59–70% for the fiscal year ending March 2026, primarily due to U.S. President Donald Trump's tariffs on foreign-made automobiles and unfavorable currency exchange rates. The company estimates operating profit will fall to about 500 billion yen ($3.38 billion), with overall sales projected to decline by over 6%. Honda now expects tariffs to cost it around 450 billion yen in operating profit. In response to these pressures and slowing electric vehicle demand, Honda is postponing its planned EV supply chain and plant project in Alliston, Ontario, Canada, for approximately two years, about a year after the project's initial announcement. Japanese automakers are also facing intensified competition from Chinese EV producers, with Toyota reporting similar profit challenges. Despite these setbacks, Honda's CEO has said the company will seek new growth through strategic partnerships.