Two major Japanese automakers have warned that earnings will be hit hard by U.S. tariffs, underlining the risk of an industrywide downturn that could stunt Japan’s economic recovery.

Nissan has more than doubled its number of planned job cuts to 20,000, while Honda has estimated a $3 billion (€2.7 billion) blow from US tariffs will cut annual profits by more than half, as leading Japanese carmakers struggle with restructuring and fallout from the trade war.

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