Honda Warns Pending U.S. Tariffs on Canadian Steel and Autos Would Be 'Catastrophic'
Honda executive Jennifer Thomas said a scheduled January 1 increase in U.S. tariffs on Canadian steel and auto imports would be catastrophic for the industry, as the company weighs plans for a potential eighth North American assembly plant.
Jennifer Thomas, senior vice president of corporate affairs for American Honda Motor Co., warned that a pending increase in U.S. tariffs on steel and auto imports from Canada starting Jan. 1 would be "catastrophic" for the industry. Thomas delivered the remarks while speaking at the Reuters Automotive USA conference in Detroit.
Current tariffs imposed under Section 232 of U.S. trade law include up to 50 per cent on Canadian steel and 25 per cent on autos. The administration of U.S. President Donald Trump placed varying tariff rates on imports from multiple countries, including Mexico and Canada, starting in early 2025. U.S. Trade Representative Jamieson Greer stated that vehicles assembled in Mexico and Canada would likely still be charged some level of tariffs.
In negotiations with Mexico, the U.S. has demanded that all North American-built vehicles contain 50 per cent U.S.-specific content. That requirement could potentially drive regional required content up to 82 per cent. Unlike other trade deals, the North American pact includes strict rules of origin, which have been described as placing the region at an unfair disadvantage.
Higher tariffs could raise costs and affect where companies such as Honda build new plants. In August, Honda said it may not build an eighth assembly plant in North America unless the trade deal between the three countries is extended.