WASHINGTON, D.C. — Honda cited tariffs as a primary factor in its decision to scrap plans to build three electric vehicle models in Ohio. The announcement comes as President Donald Trump says his policies are reviving domestic manufacturing in Ohio and around the country.

What You Need To Know

Honda announced it was cancelling development of its o-Series SUV, o-Series Saloon and Acura RSX, all of which were expected to be built in Ohio

The news comes as President Donald Trump touted other companies’ investments as evidence that his tariff policies are reviving U.S. manufacturing

Economists said the administration’s tariff policy has caused uncertainty for businesses

Honda announced on March 12 that it was cancelling development of its o-Series SUV, o-Series Saloon and Acura RSX, all of which were expected to be built in Ohio.

The company wrote in a news release,

“The profitability of Honda automobile business is currently declining due primarily to… the unfavorable impact of changes in U.S. tariff policies on the gasoline and hybrid vehicle business.”

Honda’s announcement followed Ford and GM both cancelling plans to produce or ending production of certain EV models.

Economists said multiple policies likely contributed to Honda’s decision.

“The tariffs are a part of it. Part of it is also the energy policy, where the federal government is no longer providing the kind of support to that industry that it did,” said Zach Schiller, research director of Policy Matters Ohio. “So Honda’s investment, its decision to trim that, is kind of in line with what we’re seeing across the industry, what with the reduction in tax credits and also the change in fuel economy standards.”

The announcement stands in stark contrast to President Trump’s remarks on the same day at a rally in Hebron, Kentucky. He touted a number of recent corporate investments—by companies such as Whirlpool, Stellantis, Amgen and GE Aerospace—as proof that his policies are helping U.S. manufacturing grow.

“GE Aerospace, they’re doing phenomenally, announced a $1 billion investment in American manufacturing, including $115 million right across the river in the Queen City, Cincinnati. I love Cincinnati,” Trump said during his speech.

 GE Aerospace, which makes aircraft engines, announced last week that it would invest $160 million across three Ohio sites.

However, the Cincinnati-based company has made investments in Ohio of more than $100 million each year since it was spun off from General Electric in 2024.  

Schiller said that raises questions of whether the investments were spurred by the president’s policies.

When asked if the company credits the Trump administration’s policies for spurring the investments, a spokesperson responded in a comment,

 “We share the President’s goal of revitalizing U.S. manufacturing, and this year’s new announcement builds on efforts from previous years.”

Schiller said a larger impact of the president’s sweeping tariff regime nearly one year after Trump’s so-called “Liberation Day” has been uncertainty. Since March 2025, the U.S. has lost 89,000 manufacturing jobs, according to data from the Bureau of Labor Statistics.

“For businesses, uncertainty makes it more difficult to make decisions and tends to make decisions be delayed. I think that as a result, we haven’t seen perhaps the level of investment that we might have otherwise,” Schiller said. “We’re not seeing a manufacturing renaissance in Ohio or across the country.”

Trump said during his State of the Union Address last month that the U.S. “has the greatest economy we’ve ever had.”