Honda’s profit for the fiscal year through March slipped 24.5% from the previous year, as its vehicle sales in China dropped, and the Japanese automaker warned Tuesday that President Donald Trump’s tariffs will worsen its earnings.

Japanese business leaders and officials were indignant at the U.S. decision to pause China tariffs, while Japan faces economic hardship from auto levies.

Japan's Honda Motor on Tuesday forecast a 70 percent drop in net profit for the 2025-26 financial year as US trade tariffs weigh on the global auto industry.