Honda has recorded its first annual loss in 70 years, recording losses estimated at $2.68 billion. Honda faced difficulties due to its huge investments in electric cars that failed to sell according to projections. These losses have been attributed to the high cost of production and changes in the policies of the United States government under Trump administration by removing consumer tax credits and introducing new tariffs. In order to reverse its situation, Honda is planning to reduce its electric car sales goals and sourcing cheap parts from China.