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(Bloomberg) — Honda Motor Co. (HMC) is expecting a ¥450 billion ($3 billion) hit to its full-year profit as it braces for the fallout of US President Donald Trump’s auto tariffs, joining rivals reeling from the trade war.

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Operating profit is forecast to decline to around ¥500 billion in the current fiscal year through March 2026 — far short of analyst estimates of ¥1.35 trillion. Profit in the fiscal year ended March 31 came in at ¥1.21 trillion following a weak fourth quarter, the company said in a statement Tuesday.

“The impact of tariff policies in various countries on our business has been very significant, and frequent revisions are made, making it difficult to formulate an outlook,” Chief Executive Officer Toshihiro Mibe told reporters. The automaker, which has already outlined plans to move production of its hybrid Civic from Japan to the US, is considering whether to expand US production capacity in response to tariffs.

Honda joins a growing list of global automakers tallying the cost of Trump’s tariffs. General Motors Co. (GM) has slashed its full-year profit guidance by as much as $5 billion, while Ford Motor Co. (F) is bracing for a $1.5 billion annual hit. Toyota Motor Corp. (TM) sees a $1.2 billion profit drop in just April and May. On Monday, Mazda Motor Co. (MZDAY) said it was withholding its annual guidance until the dust settles, adding the impact from tariffs could amount to as much as $68 million in April alone.

The US represents the biggest market for five of Japan’s largest automakers, including Honda. The company sold roughly 1.4 million cars in the US in 2024, according to Bloomberg Intelligence, almost 40% of which were imported.

Honda also Tuesday said it has postponed plans to establish an electric vehicle supply chain in Ontario, Canada, by two years, owing to a downturn in demand.

The previously announced plan included a battery plant and an EV factory with an annual production capacity of 240,000 vehicles.

“The growth of the electric vehicle market has slowed more than initially expected, making it difficult to anticipate further progress,” Mibe said. Changes to the company’s electrification strategy will be explained in detail during a business update on May 20.