Honda has canceled three electric vehicles it was developing for the U.S. market, blaming President Donald Trump’s tariffs and rising competition from Chinese EV companies.
Honda said on Thursday that Trump’s tariffs have harmed the company’s gas and hybrid vehicle business, which has put its overall automobile business in “an extremely challenging earnings situation.”
Combined with an “inability to respond flexibly” to competition from China and slowing growth in the U.S. market, the company said it has decided to cancel the Honda 0 SUV and 0 Saloon, which it first showed off at the 2025 Consumer Electronics Show. The electric Acura RSX has also been scrapped.
The Japanese automaker said it will “reassess its resource allocations and further strengthen its hybrid models” in the U.S. market. All these changes could cost Honda as much as $15.7 billion, the company warned.
Honda joins an increasingly long list of legacy automakers that have pulled plans for electric vehicles they had once planned to sell in the U.S.
