Honda Motor issued a lukewarm profit forecast as it braced for the fallout of U.S. President Donald Trump’s trade war.

Operating profit is forecast to land at around ¥500 billion ($3.4 billion) in the current fiscal year through March 2026, falling far short of analyst estimates of ¥1.35 trillion. Profit in the fiscal year ended March 31 came in at ¥1.21 trillion, following a weak fourth quarter, the company said Tuesday.

While Honda may have dodged a bullet by walking away from a deal to tie up with struggling rival Nissan, it will have to go it alone as the global auto market is roiled by U.S. tariffs and intense competition in China.