Honda scraps 3 EVs planned for the US, blaming tariffs and Chinese competition

In a significant shift in strategy, Honda has announced the cancellation of three electric vehicle models originally slated for the U.S. market. The automaker cites the impact of President Trump's tariffs and the intensified competition from Chinese electric vehicle manufacturers as key factors in this decision. On Thursday, Honda revealed that the tariffs have negatively affected its gas and hybrid vehicle sales, leading to what the company describes as an "extremely challenging earnings situation". This financial strain, coupled with difficulties in adapting to competitive pressures from China and a slowdown in U.S. market growth, prompted Honda to scrap its plans for the Honda 0 SUV and 0 Saloon, which were initially showcased at the 2025 Consumer Electronics Show. Additionally, the electric Acura RSX has also been removed from their upcoming lineup. Moving forward, Honda indicated a strategic pivot towards reassessing its resource distribution and reinforcing its hybrid vehicle offerings in the U.S. market. The company warns that these modifications could lead to a financial impact of up to $15.7 billion. This move places Honda among a growing list of established automakers that have reconsidered their commitments to electric vehicles previously earmarked for the American consumer market.