Honda stock drops by 4% as company projects $3 billion tariff hit, impacting profit forecast negatively.

From Yahoo Finance: 2025-05-13 14:03:00

Honda is the latest automaker to warn of a significant profit hit due to President Trump’s auto tariffs, expecting a $3.05 billion net tariff impact. The company’s operating profit for FY 2026 is projected to drop to $3.88 billion from $9.09 billion the prior year. Honda’s ADRs in New York fell by 4% in midday trade. The impact of tariffs and currency fluctuations led Honda to shift production of the Civic hybrid sedan to the US from Japan. Other automakers like GM, Ford, and Stellantis are also facing massive tariff hits, with Toyota expecting a $1.3 billion profit reduction in just two months. Honda and shareholders hope for a trade deal resolution to address auto tariffs. Additionally, the company will delay an EV battery plant project in Canada due to EV uptake slowdowns and tariffs.



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