Government representatives are contesting a report suggesting that Honda is contemplating relocating a portion of its Canadian production to the United States due to tariffs, labeling the information as inaccurate and unverified.
On Tuesday, Japan’s Nikkei financial newspaper indicated that Honda is considering transferring enough production of its Canadian CR-V and Civic models to the U.S. to achieve 90 percent of its U.S. sales from vehicles manufactured there, an increase from the current 70 percent.
Courtesy CBCNN
Federal Industry Minister Anita Anand dismissed the report in a social media statement, asserting, “I am in close contact with the company, and Honda has indicated that no production decisions impacting Canadian operations have been made or are under consideration at this time.”
Anand mentioned that she would be meeting with the CEO of Honda Canada later today for further clarification. The company has not yet provided a response to inquiries for comment.
Ontario Premier Doug Ford previously stated that the head of Honda Canada informed him that the report is incorrect. Ford and his office maintain that Honda expressed a desire to boost production in the U.S., but not at the detriment of its Canadian operations.
Honda’s facility in Alliston, Ontario, employs approximately 4,200 individuals and produced around 375,000 vehicles in Canada in 2023. Ford’s office reports that Honda has assured the province that the Canadian plant is operating at full capacity and that there are no anticipated job losses.
Prime Minister Mark Carney remarked during a campaign event that U.S. President Donald Trump’s tariffs are an effort to disrupt the integration of North America’s automotive industry.
“We are witnessing some immediate effects, including layoffs for certain automakers and potential changes in production,” he stated.
The U.S. implemented a 25 percent tariff on all imported vehicles on April 3, including those manufactured in Canada, despite the Canada-U.S.-Mexico free trade agreement, significantly increasing costs for all importers.
Carney expressed his belief that the Trump administration is not fully considering the interconnectedness of the automotive industry, suggesting that it may need to make the currently temporary tariff exemption on auto parts from Canada a permanent measure.
To mitigate the impact on Canada’s automotive sector, the federal government announced on Tuesday that producers who sustain their production levels in Canada will be allowed to import a limited number of U.S.-assembled vehicles into Canada without incurring tariff counter-measures.
This announcement follows Mazda’s confirmation that it has ceased production of CX-50 vehicles destined for Canada at its Alabama facility due to the imposition of Canada’s counter-tariffs.
Conservative Leader Pierre Poilievre criticized Donald Trump’s “unfair targeting of Canada,” while asserting that Canada’s counter-tariffs should remain enforced.
Speaking outside a hospital in Montreal, NDP Leader Jagmeet Singh argued that Canada should prevent auto manufacturers like Honda from dismantling infrastructure that was funded by public money.
He further stated that Canada should establish regulations that prohibit automakers from selling vehicles in the country unless they maintain a manufacturing presence there.
“With a population exceeding 40 million and growth driven by our immigration policies, Canada represents a lucrative market for automotive companies. If you intend to sell cars in Canada, you must have a presence here, which means either manufacturing vehicles or providing jobs within the country,” Singh remarked.
Last year, Honda announced a $15 billion investment in its Canadian operations aimed at developing an electric vehicle supply chain in Ontario. This initiative, backed by up to $5 billion in public funding, includes plans to construct an electric vehicle battery plant adjacent to its existing facility in Alliston.