Honda cancels three planned EV models in the US amid tariff pressure and rising Chinese competition

Honda has scrapped three electric vehicle models it had been developing for the U.S. market, citing President Donald Trump’s tariffs and intensifying competition from Chinese EV makers as key reasons for the decision.

The company said on Thursday that Trump’s tariffs have negatively affected its gas-powered and hybrid vehicle business, leaving Honda’s overall automobile operations in what it described as “an extremely challenging earnings situation.”

Alongside that pressure, Honda cited an “inability to respond flexibly” to growing competition from China and slowing growth in the U.S. market. As a result, the automaker said it has decided to cancel the Honda 0 SUV and the 0 Saloon, both of which it first unveiled at the 2025 Consumer Electronics Show. The electric Acura RSX has also been dropped.

Honda said it will now “reassess its resource allocations and further strengthen its hybrid models” for the U.S. market. The company warned that all of these changes could end up costing as much as $15.7 billion.

With this move, Honda joins a growing list of traditional automakers that have backed away from electric vehicles they had previously planned to introduce in the U.S.