Honda has halted the development of three electric vehicles intended for the U.S. market, citing President Donald Trump’s tariffs and increasing competition from Chinese EV companies.
On Thursday, Honda explained that Trump’s tariffs have negatively impacted its gas and hybrid vehicle operations, placing the company’s overall automobile business in “an extremely challenging earnings situation.”
Faced with an “inability to respond flexibly” to Chinese competition and slowing growth in the U.S. market, Honda has decided to cancel the Honda 0 SUV and 0 Saloon, initially unveiled at the 2025 Consumer Electronics Show. The electric Acura RSX project has also been terminated.
The company announced plans to “reassess its resource allocations and further strengthen its hybrid models” in the U.S. market. These adjustments could potentially cost Honda up to $15.7 billion.
Honda is now among several legacy automakers that have abandoned plans for electric vehicles originally intended for the U.S. market.