TOKYO -- Honda reported Tuesday a 42% 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% 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% from its previous target of 30%.
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.
Last year, Trump lowered the tariffs on automobiles and auto parts to 15% from an earlier 25% that he had initially announced.Japan promised to invest $550 billion in U.S.
projects.Popular ReadsNancy Guthrie abduction: Sheriff reveals more detailed timelineFeb 9, 3:55 PMNancy Guthrie latest: Savannah Guthrie pleads with public, 'We need your help'Feb 9, 8:02 PMMinneapolis live updates: ICE arrest powers expanded, memo saysJan 31, 5:23 PMTariffs are a major blow to Japan’s export-reliant economy, including the automakers.Last week, Japan’s top automaker Toyota Motor Corp.
reported a decline in recent profit, and announced that its chief financial officer, Ken...