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

Honda has canceled three electric vehicle models planned for the U.S. market, citing President Trump's tariffs and intense competition from Chinese EV manufacturers. The company will shift resources toward strengthening its hybrid vehicle lineup instead, with the decision potentially costing up to $15.7 billion. This reflects broader challenges facing legacy automakers in the EV transition amid geopolitical and market pressures.

Background

The global automotive industry is undergoing a major transition to electric vehicles, with legacy automakers facing pressure from both government regulations and new competitors, particularly from China. Trade policies and tariffs have become significant factors influencing investment decisions in this capital-intensive sector.

Source
TechCrunch
Published
Mar 12, 2026 at 10:00 PM
Score
7.0 / 10