Tariffs could cost Japan's second-largest automaker up to 650 billion yen this financial year—equivalent to $4.4 billion and almost half last year’s profit. Reporting results Tuesday, Honda forecast a roughly two-thirds slide in operating profit for the year through March 2026,

NET PROFIT FORECAST: Honda is expected to post a 26% drop in net profit to 175.13 billion yen, equivalent to $1.20 billion, for the three months ended March, according to a poll of analysts by LSEG. That would compare with Y237.57 billion in net profit in the year-earlier period.

The Japanese automaker confirmed it would cut 11,000 more jobs and slim down production.Nissan also saw its profit almost wiped out in the year that just ended.Operating profit hit $472 million in the 12 months to March - a decline of 88% from the previous year.

All three of Japan’s largest carmakers are struggling with tough market conditions in the world’s two largest economies. In the U.S., tariffs have roiled their global supply chains, and in China, they face competition from domestic car companies that sell next-generation electric vehicles at cutthroat prices.