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Japanese automaker Honda predicts that its profit for this fiscal year will drop significantly by 59%, and has announced the suspension of plans to build an electric vehicle supply chain in Canada, primarily due to the uncertainty caused by U.S. President Trump's tariff policies. The second largest Japanese automaker expects its operating profit for the fiscal year ending March 2026 to decrease to 500 billion yen (approximately $3.8 billion), a sharp decline from the previous fiscal year's 1.21 trillion yen. Honda's latest forecast reflects the challenges that automakers are facing under the dual pressure of import tariffs imposed by the Trump administration and the rise of electric vehicle manufacturers. Honda also indicated that they will postpone the construction of the electric vehicle supply chain in the province of Ontario in Canada, which was announced in April 2024, by "approximately two years." The company stated that this decision was based on the current market environment of slowing demand for electric vehicles.