Honda Motor Co. raised its annual profit forecast to reflect softer than initially indicated US import tariffs on Japanese goods, although those levies weighed on the company’s latest quarterly performance.

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 Motor reported a 50% drop in first-quarter operating profit on Wednesday, as a stronger yen and the impact of U.S. President Donald Trump's tariffs took its toll, but the company raised its full-year forecast.