Honda Motor Co. announced it has canceled plans to launch three electric vehicles in the United States, citing trade tariffs and competitive pressure from Chinese manufacturers as primary factors behind the decision.

The Japanese automaker said the strategic pivot will result in costs of up to $15.7 billion, representing a significant financial impact from the cancelled EV program. The company had previously committed to these models as part of its broader electrification strategy for the North American market.

The decision reflects broader challenges facing traditional automakers as they navigate the transition to electric vehicles while contending with trade policies and increased competition from Chinese EV manufacturers. Honda's announcement comes as the automotive industry grapples with supply chain disruptions and shifting regulatory landscapes across different markets.

Honda has not specified which three EV models were affected by the cancellation or provided a revised timeline for its US electric vehicle rollout. The company continues to develop electric vehicles for other global markets as part of its long-term electrification goals.