On November 7, Honda Motor, Japan’s second-largest automaker, slashed its annual profit forecast by roughly 20% on Friday. The move came alongside news that its operating profit for the second quarter had tumbled 25%. Pressured by U.S. import tariffs and one-off expenses tied to electric vehicle development, Honda is facing mounting challenges. The company has revised its annual operating profit projection for the fiscal year ending March 2026 downward by 21%, from 700 billion yen to 550 billion yen (approximately US$3.65 billion). This new estimate also factors in a production slowdown caused by ongoing chip supply shortages. Between July and September, Honda reported an operating profit of 194 billion yen (around US$1.29 billion). This figure fell short of both the average analyst forecast of 212.1 billion yen, as compiled by LSEG from nine analysts, and the 257.9 billion yen profit recorded during the same period in 2024.