The company raised its full-year operating profit forecast to 700 billion yen from 500 billion yen, and said it expected the yen to trade at an average rate of 140 per dollar, five yen weaker than it had previously estimated.

Honda has reported its profit in the last quarter was half of what it was a year earlier, as automakers were hit by 25% tariffs on vehicle exports to the United States.

Toyota has reported its profit plunged 37% in the April-June quarter and it lowered its full year earnings forecasts, largely because of President Donald Trump’s tariffs