Former U.S. President Donald Trump proposed a 50% tariff on Canadian auto imports starting January 2027. The proposal follows a breakdown in trade negotiations between the U.S. and Canada.
The tariff threatens Honda’s integrated North American supply chain and Canadian operations. Honda and Toyota currently account for more than three-quarters of all vehicle production in Canada.
Approximately 25% of Honda’s U.S. vehicle sales last year were built in Canada. This includes the best-selling CR-V SUV.
Analysts warn that the 50% levy could force Honda to shut down its Canadian production lines. The United States remains a critical market for the Japanese automaker’s regional manufacturing.