Honda's Mexican operations get a month reprieve, while Canada tariffs on the clock for tomorrow
Posted February 3, 2025
While the U.S announced this morning a one month delay in slapping tariffs on Mexican exports, no such action at this post was extended to Canada, meaning President Donald Trump's order to apply 25 per cent tariffs on all goods, and 10 per cent on gas and oil, would come into effect at midnight tomorrow. Canada has proclaimed it will retaliate with targetted tariffs on American goods.
Reportedly, Mexico agreed to dispatch 10,000 soliders to its border, while Trump has agreed to stem the flow of assault weapons into that country. This morning Trump and Canadian Prime Minister Justin Trudeau spoke by telephone and are sceduled to speak again at 3 pm. After the first session, Trump posted on social media that complaining that Canada does not permit American banks to operate here.
The New Tecumseth region is in a direct line of attack on several fronts as Honda's Canada manufacturing plants are in Alliston, and the Japanese based automaker last April announced its plans for a $15 billion investment to produce electric vehicles and a battery plant. More than 80 per cent of its finished products are exported to the U.S. and would be subjected to the 25 per cent tariffs, making them more expensive on American dealer lots, slowing sales, which then bleed into the suppliers, and the transportation companies trucks/trains that deliever the parts and vehicles.
Ken Chiu, Corporate Communications, Honda Canada, told Free Press Online via email, they are not operating in panic mode and continue to move forward on expansion plans in Alliston.
"As we work to understand the impact the tariffs may have on our business, we are taking no immediate actions related to either our current manufacturing operations or electrification production plans in Canada," said Chiu. "We are committed to supporting Honda's global goal of carbon neutrality by 2050 with 100 per cent global EV sales by 2040 and we will continue to take a measured approach by utilizing our portfolio of ICE, hybrids and EVs as we navigate the transition towards electrification. Our path is for the long term and with our flexibility in producing powertrains in North America, we can pivot accordingly."
Attached below an excerpt from a notice posted this morning for Honda's associates re dealing with tariff threats:
