Business and Economy
Honda Canada Stays Put Despite U.S. Tariff Pressures
PCI
FILE: Honda’s booth at the 2008 Canadian International AutoShow in Toronto. (Photo by Ian Muttoo/Flickr, CC BY-SA 2.0)
April 16, 2025 — Honda Canada has confirmed it has no plans to move production out of Ontario, despite a recent report suggesting the automaker might shift some operations to the U.S.
A story from Japan’s Nikkei newspaper claimed Honda was preparing to relocate parts of its production from Canada and Mexico to the U.S. This came after the U.S. government introduced a steep 25% tariff on imported cars, causing concern across the North American auto industry.
Canadian officials responded quickly. Ontario Premier Doug Ford and federal Industry Minister Anita Anand said the report was inaccurate. Honda Canada later backed that up, saying its factory in Alliston, Ontario, will continue running at full capacity and that there are no plans to change operations.
Honda also noted a 9% increase in Canadian sales during the year’s first quarter. The company says it can keep up with the shifting market.
Still, the report has raised concerns about long-term changes in the industry. Automakers are pressured to make more cars inside the U.S. to avoid tariffs. According to Nikkei, Honda wants to make 90% of its U.S. car sales from locally built vehicles.
Industry experts, however, say there’s no immediate threat to Honda’s Canadian operations. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, said the report likely reflects long-term planning, not firm decisions. “The Japanese plan for plans,” he said.
Even if Honda were to shift production, experts say it wouldn’t happen quickly or cheaply. Building a new plant in the U.S. could take two to three years and cost up to $5 billion.
For now, Honda remains committed to its Canadian facility. A major $15 billion deal with the Canadian and Ontario governments to build an electric vehicle supply chain is still active—showing continued faith in Canada’s role in the future of auto manufacturing.
