Honda Warns 50% U.S. Tariffs on Canadian Autos Could Prove Catastrophic

Jennifer Thomas of American Honda told the Reuters Automotive USA conference in Detroit on Tuesday that doubling U.S. tariffs on Canadian autos from 25% to 50% "really would be catastrophic just for the entire industry." She said the United States, Canada, and Mexico need the trilateral framework to stay in place so the U.S. industry can compete, calling it "integral to our success," and said she is "cautiously optimistic that cooler heads will prevail" after reports that U.S.-Canada talks resumed, including on critical materials such as aluminum. Outlets disagree on the date of any increase—some report Jan. 1; others Jan. 1, 2027—if no deal is reached. Current Section 232 measures include up to 50% on Canadian steel and 25% on autos. Jamieson Greer has said USMCA will face annual review rather than automatic extension. A U.S. proposal would require 50% U.S.-specific content, raising regional content to 82%. Thomas said "Right now, North America is at an unfair disadvantage," pointing to 15% auto tariffs in U.S. deals with Japan and South Korea, and, per one account, that she never thought she would see the region put at such a disadvantage. Honda is Canada's second-largest vehicle producer after Toyota at nearly 500,000 vehicles a year; more than 60% of vehicles it sells in the U.S. are built at U.S. plants. In August it said it may not build an eighth North American assembly plant unless USMCA is extended; it postponed a $15 billion Ontario EV project and shifted CR-V production to Ohio. Thomas said Honda is at capacity, exploring all options, and will continue to invest in the U.S. Whether talks prevent the increase remains unresolved.