Japan's Honda Motor forecast a 59% profit decrease in the current financial year and said it would put on hold a plan to build an EV supply chain in Canada, amid the uncertainty stemming from U.S. President Donald Trump's tariffs.

Japanese automaker Honda is warning that U.S. auto tariffs are expected to carve a "huge" hole in its operating profit within its current fiscal year, as it manages uncertainty stemming from the trade environment and slowing electric vehicle adoption.

President Trump’s decision to negotiate a break for China on tariffs is galling for Japan, which is reeling from auto sector levies that the White House has shown no sign of willingness to lift.