Honda has reported its profit for the fiscal year through March slipped 24.5% from the previous year as its vehicle sales in China dropped.

Japanese business leaders and officials were indignant at the U.S. decision to pause China tariffs, while Japan faces economic hardship from auto levies.

Japan’s economy likely suffered a contraction in the first three months of this year, signaling underlying fragility even before US tariff measures started hitting the country in earnest, according to economists surveyed by Bloomberg.