Japan's Honda Motor's operating profit plunged in its fiscal fourth quarter, and the company is still bracing for the full effects of the U.S. tariffs, CNBC reports.

Honda 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 the tariffs.

Japan's second-biggest automaker expects operating income to total 500 billion yen ($3.38 billion) in the year to March 31, 2026, versus 1.21 trillion yen in the year that just ended. Honda's forecast is the latest signal of the difficulty carmakers are having navigating President Donald Trump's tariffs on foreign-made automobiles at the same time the industry is being hit by the rise of Chinese EV producers.

Honda also said it would put on hold for "approximately two years" a plan announced in April 2024 to build an EV supply chain in Ontario, Canada. That decision was taken due to the current slowdown in EV demand, it said.

($1 = 147.8900 yen)