Driving the news: Honda raised its annual profit forecast to $4.7 billion after securing softer 15% U.S. tariffs on Japanese imports, while beginning pre-production of its ultra-premium Sony collaboration, the nearly $90K Afeela 1 electric vehicle.
For context: Honda cut its expected tariff hit from $4.4 billion to $3 billion thanks to the U.S.-Japan trade deal, though the company still posted a quarterly profit miss due to $850 million in tariff costs.
The company's quarterly profit of $1.65 billion fell short of analyst expectations despite strong motorcycle business performance.
Why it matters: Even a "better” tariff deal can still inflict major damage. Honda, like many other automakers, will continue absorbing billions in extra costs and raising U.S. prices to offset the pain. And the timing of the premium Afeela launch (mid-2026) seems risky given the broader market uncertainty.
Bottom line: While Honda has avoided the worst-case tariff scenario (for now), it's still dealing with massive trade-related costs.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
No-BS insights, built for car dealers. Free, fast, and trusted by 55,000+ car dealers.
