First-quarter profit halved from a year earlier due in part to the U.S. levies, though the automaker raised its annual earnings forecasts, citing a smaller-than-feared tariff hit.

Honda Motor Co. raised its annual profit forecast even as its quarterly figure took a hit from President Donald Trump’s tariffs on cars and car parts imported to the US.

Honda Motor reported a 50% drop in first-quarter operating profit on Thursday, as a stronger yen and the impact of U.S. President Donald Trump's tariffs took a toll on its results, but the company raised its full-year forecast.