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.

First-quarter profit halved from a year earlier due in part to the U.S. levies, though the automaker raised its annual earnings forecasts, citing a smaller-than-feared tariff hit.

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