Honda cancels three US electric vehicle models

On Thursday, the Japanese automaker Honda announced that it has canceled three electric vehicles it was developing for the U.S. market. The canceled models include the Honda 0 SUV and the 0 Saloon, which the company first showed at the 2025 Consumer Electronics Show. The third canceled model is the electric Acura RSX, which was being developed under Acura, Honda’s luxury vehicle brand. The cancellation of these three models represents a major strategic shift in the company’s product pipeline for the U.S. market, where it had previously planned to establish a stronger electric vehicle presence. This decision marks a significant retreat from the automaker’s earlier electrification goals in the U.S.

Honda attributed the cancellations to President Donald Trump’s tariffs and rising competition from Chinese electric vehicle companies. According to Honda, the tariffs have harmed the company’s gas and hybrid vehicle business. This harm to its gas and hybrid vehicle business has put its overall automobile business in a difficult position. Combined with what the company described as an inability to adapt flexibly to competition from China and slowing growth in the U.S. market, the company decided to cancel the three electric vehicle models. Consequently, Honda, the Japanese automaker, stated that its overall automobile business is currently in “an extremely challenging earnings situation” due to these factors.

In response to these challenges, the Japanese automaker announced that it will reevaluate its resource allocation and further bolster its hybrid models in the U.S. market. However, these changes will come with a significant financial impact. Honda warned that all these changes could cost the company as much as $15.7 billion. The potential cost of as much as $15.7 billion reflects the scale of the write-downs and resource reallocation required to pivot away from these electric vehicle projects as the company refocuses its efforts on hybrid offerings. This financial warning underscores the high stakes involved in restructuring its regional product portfolio.

Why it matters

Honda’s retreat highlights how geopolitical trade tensions and aggressive competition from Chinese EV makers are forcing legacy automakers to rethink their electrification timelines and capital allocation.