Analysis:Toyota and Honda may get stuck with the bill for Trump’s Canada tariffs
Analysts say the levy could force the two automakers to close some Canadian assembly lines and raise costs on more than three-quarters of cars built there.
- On August 31, President Donald Trump proposed a 50 per cent tariff on Canadian car imports, targeting Ottawa with levies that would double current rates. Toyota and Honda face the largest potential impact, accounting for over three-quarters of all cars produced in Canada.
- Both automakers rely heavily on Canadian assembly lines to serve the U.S. market, their largest and most profitable region. Canadian-built vehicles account for 17 per cent of Toyota's U.S. sales and nearly a quarter of Honda's, making them critically dependent on cross-border supply chains.
- If the tariffs take effect January 1, 2027, analysts warn of severe consequences. "If you really wanted to destroy the Canadian auto industry, you could with these tariffs," said Julie Boote, autos analyst at Pelham Smithers Associates in London.
- Both companies may be forced to shutter Canadian production lines or redirect exports to other markets to maintain U.S. supply. For Honda, already struggling to return to profitability, these tariffs compound existing operational strain.
- These proposed levies exemplify Trump's broader trade policies that have left the global auto industry scrambling to adapt. Uncertainty surrounding the US-Mexico-Canada Agreement continues complicating long-term investment decisions for automakers across North America.
14 Articles
14 Articles
The Economic Times
Times of IndiaTrump aims at Canada. Toyota and Honda could pay the bill
Proposed US tariffs could significantly impact Canadian auto production lines. Japanese automakers Toyota and Honda face potential production cuts due to these tariffs. These companies rely heavily on the United States as their largest market. The tariffs may force a major shift in global automotive supply chains. Automakers are now adapting to changing trade policies and competition.
Channel News Asia
PressNewsAgencyAnalysis:Toyota and Honda may get stuck with the bill for Trump’s Canada tariffs
TOKYO, Aug 31 : U.S. President Donald Trump is targeting Ottawa with a proposed 50 per cent tariff on Canadian car imports — but Japan's Toyota and Honda may end up footing the bill.The two Japanese automakers account for more than three-quarters of all cars made in Canada. They could be forced to shutter
Analysis-Toyota and Honda may get stuck with the bill for Trump’s Canada tariffs
By Daniel Leussink and Maki Shiraki TOKYO, Aug 31 (Reuters) - U.S. President Donald Trump is targeting Ottawa with a proposed 50% tariff on Canadian car imports — but Japan's Toyota and Honda may end up footing the bill. The two Japanese automakers acc...
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