The company raised its full-year operating profit forecast to 700 billion yen from 500 billion yen, and said it expected the yen to trade at an average rate of 140 per dollar, five yen weaker than it had previously estimated.

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 Co. raised its annual profit forecast even as its quarterly figure took a hit from President Donald Trump’s tariffs on cars and car parts imported to the US.The carmaker now sees ¥700 billion ($4.