Trump's tariffs hanging over Honda, execs mull shifting some Alliston production to Ohio

 

Posted February 26, 2025​

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American President Donald Trump told a press conference this afternoon ahead of his first cabinet meeting, 25 per cent tariffs against Canada and Mexico will start April 2, and not March 4 as was previously announced, leaving Honda's manufacturing and EV plans in Alliston in limbo for an additional month.

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The 25 per cent tariffs on cars, steel, and aluminum would directly hit Honda CIvic and the CR-Vs made in Alliston, which 80 per cent are shipped to the U.S., and could delay and or scale back the $15 billion investment to electrify its future product lines in Alliston.  They're also produced in Ohio and according to published comments from Honda executives on auto industry news sites, the automaker is weighing several options to mitigate the impacts ahead of any new tariffs, including shifting some vehicle production from Mexico and Canada to the U.S.

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Any shifts in production to Ohio, would not be limited to to the assembly plants in Alliston, but the trucking, and parts suppliers to name a few.

 

Ken Chiu, Corporate Communications, Honda Canada, told Free Press Online , "We continue to monitor the fluid situation as we approach possible tariffs (April 2)."

 

"We will take no immediate actions related to either our current manufacturing operations or electrifications plans until we have a full understanding of the impact of tariffs on our business," said Chiu. "Our focus has always been, and will continue to be, on protecting our more than 4,000 manufacturing associates and our long-standing business operations in Canada.​​​"