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.

Honda’s profit in the last quarter was half of what it was a year earlier, the company said Wednesday, as automakers were hit by 25% tariffs on vehicle exports to the United States.

The carmaker raised annual earnings forecasts following a trade deal between Japan and the U.S. struck in July.