U.S. President Donald Trump's tariffs are cleaving Japan Inc, as some big exporters like Toyota Motor slash their profit forecasts while Sony and Honda are among those saying the impact will be less than they had feared.

Toyota, Honda and Nissan forecast big hits to their profits despite a trade deal that cut auto levies to 15 percent. The reduced rate has yet to be implemented.

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 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.

The negative impact of tariffs was estimated at about 450 billion yen ($3 billion), based on “a detailed review,” according to Honda.