Japanese automaker Honda Motor anticipates a substantial Y450bn ($3bn) impact on its full-year profit as a result of US President Donald Trump's auto tariffs.

The company's operating profit is projected to fall to around Y500bn for the fiscal year ending March 2026, a figure considerably below analyst expectations of Y1.35tn.

This follows a profit of Y1.21tn for the fiscal year ending 31 March, despite a weaker fourth quarter.

Honda chief executive officer Toshihiro Mibe statement reported by Bloomberg: “The impact of tariff policies in various countries on our business has been very significant, and frequent revisions are made, making it difficult to formulate an outlook.”

The automaker, which is shifting production of its hybrid Civic from Japan to the US, is exploring the possibility of expanding its American production capacity to mitigate the effects of the tariffs.

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Honda joins other major automakers, such as General Motors, Ford Motor, and Toyota Motor, in calculating the financial toll of Trump's trade policies.

General Motors has reduced its profit forecast by up to $5bn, while Ford anticipates a $1.5bn hit.

Toyota has reported a $1.2bn profit decline for April and May alone.

Mazda Motor, also affected by the tariffs, has postponed its annual guidance, citing potential impacts that could reach $68m for April.

The US market is crucial for Japan's leading automakers, with Honda selling approximately 1.4 million cars there in 2024. Nearly 40% of these vehicles were imports, according to Bloomberg Intelligence.

Also, Honda reported a 3.4% decrease in global production to 329,664 units in March 2025, down from 341,092 units a year earlier.

This decline was attributed mainly to a 4% drop in overseas production, which totalled 268,510 units, while production in Japan saw a marginal decrease to 61,154 units.

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"Honda braces for $3bn tariff impact on profits" was originally created and published by Just Auto, a GlobalData owned brand.

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