A senior Honda executive said the Japanese automaker might not build an eighth assembly plant in North America unless a key trade deal is extended.
President Donald Trump threatened 50% tariffs on Canadian cars, trucks, auto parts and steel starting January 2027, citing a $60 billion trade deficit with Canada.
The move, which would take effect in January, is the latest in the rapidly escalating trade war between the two neighbors.
President Donald Trump said the U.S. will raise tariffs on imports of cars, trucks and auto parts from Canada to 50% on Jan. 1, 2027. US President Donald Trump speaks to reporters before boarding Air Force One at Joint Base Andrews, Maryland on Aug. 21, 2026.
Surprisingly, many foreign markets are way ahead of the U.S. in year-to-date performance.
The Japanese automaker is aiming to improve its hybrid EV offerings to shore up its car business's profitability.
Honda Motor said on Wednesday profit rose for the first time in six quarters as a boost from a weaker yen helped offset declining global sales and higher material costs linked to the Iran war, and raised its full-year forecast.