Honda Warns 20.9% Canada Exposure Could Force Price Hikes and Freeze 8th North America Plant
Updated
Updated · Detroit Free Press · Aug 28
Honda Warns 20.9% Canada Exposure Could Force Price Hikes and Freeze 8th North America Plant
2 articles · Updated · Detroit Free Press · Aug 28
Summary
Honda said it may raise vehicle prices and shelve plans for an eighth North American assembly plant if the U.S. and Canada fail to reach a new trade deal.
The warning reflects Honda’s heavy reliance on Canadian production: 20.9% of its U.S. sales come from Canada-built vehicles, versus 13.7% for Toyota and 0%-5.1% for Detroit automakers.
Trump imposed 50% tariffs on about $20 billion of Canadian goods on Aug. 22, while also threatening to lift vehicle and parts tariffs from 25% to 50%; Canada plans dollar-for-dollar retaliation from Sept. 8.
Analysts say broader auto tariffs would push up prices, cut model availability and incentives, and could shut plants and cost jobs across Michigan, Ontario, Ohio, Indiana and Wisconsin.