Tokyo-based Honda Motor Co. in the three quarters amounted to 465.4 billion yen ($3 billion), up from 805.2 billion yen.

That marks the second year in a row that earnings have declined at Honda, the maker of the Accord sedan, Civic compact and Odyssey minivan.

Sales in the three quarters fell 2.2% to 15.98 trillion yen ($102.6 billion) from a year earlier. Honda kept its full fiscal year revenue estimate at 300 billion yen ($1.9 billion).

the slowing down of electric vehicles in the US market is a negative factor, according to Honda, while the relatively healthy performance of the motorcycle division works as a plus.

Honda lowered the global EV sales ratio projection for 2030 to 20% from the previous target of 30%. It also said it has canceled development on some EV models, as the EV market is changing.

The Trump administrationwhich favored the oil and gas industry, backed earlier programs that supported the proliferation of EVs, dismantled programs started during the Biden administration, which encouraged environmentally clean cars and trucks.

Last year, Trump downgraded the tariffs on automobiles and auto parts to 15% from the initial 25% he had previously announced. Japan has pledged to invest $550 billion in US projects.

The tariffs are a major blow to Japan’s export-dependent economy, including manufacturers. Last week, Japan’s leading automaker Toyota Motor Corp. reported a decline in recent profits, and announced that its chief financial officer, Kenta Kon, will become the new chief executive and president.

Prime Minister Sanae Takaichiwho took office in October as Japan’s first female leader, scored a landslide parliamentary election victory for the ruling party at the weekend. It is expected to make it easier for his Liberal Democratic Party to continue its policies, including strengthening growth by increasing government spending, especially on technology and defense.

Honda stock jumped 2.1% in Tuesday’s trading. The Nikkei 225 benchmark finished 2.3% higher, breaking a record high for the second day in a row, in a rally started, in part, by Takaichi’s popularity.