The heavy tariffs throw into disarray the highly integrated auto industry, built on the foundation of free trade in North America.
Automakers still have some reprieve, as tariffs are on hold for vehicles compliant with the Canada-U.S.-Mexico free trade agreement. But that’s only until the U.S. determines how it will exempt just the value of U.S. parts in the vehicle.
Other automakers in Canada are also grappling with how to navigate the disruptive developments but some are pushing on with production.
Honda Canada confirmed its Alliston, Ont., plant, which employs more than 4,000 workers and produces around 400,000 Civics and CR-Vs a year, is still running.
“We are working with our manufacturing, parts, trade and logistics providers across North America to understand the impact of the announced U.S. tariffs and we will adopt a measured, thoughtful approach to actively address both immediate and future effects,” said spokesman Ken Chiu.
Toyota Canada, which produces around 350,000 RAV4s and 110,000 Lexus crossovers at its plants in Cambridge and Woodstock, Ont., also confirmed production has not been affected.
“While this is still a highly fluid situation, we have no plans to change our production within the foreseeable future. Our vehicles are in high demand, and we will continue to build to plan,” said spokesman Philippe Crowe in a statement.
“At the same time, we will continue to work with our federal and provincial governments toward a sustainable solution.”
Other automakers including Ford and GM did not immediately respond to a request for comment.
Tariffs will force the shutdown of many other auto plants, said Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, on social media shortly after Trump confirmed he was going ahead with the auto tariffs.
Volpe said Canada avoiding reciprocal tariffs while still being subject to auto and metal tariffs was like “dodging a bullet into the path of a tank.”
Unifor national president Lana Payne said in a statement that Trump is clearly trying to pick off Canadian industries one by one.
“The reality is that this trade war is just getting started and Canada is still feeling the pain of U.S. trade penalties disproportionately worse than any country in the world. That’s why Canada needs the strongest possible response to these tariffs while we work toward building a more resilient Canadian economy.”
