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Honda Denies Reports of Canadian Production Shift Despite U.S. Tariff Pressures

Officials confirm Alliston plant remains at full capacity as automaker evaluates U.S. production expansion.

The Honda logo is displayed, at the 46th Bangkok International Motor Show in Bangkok, Thailand, March 24, 2025. REUTERS/Chalinee Thirasupa/File Photo
Honda employees work along the vehicle assembly line before an event announcing plans for a Honda electric vehicle battery plant in Alliston, Ont., on April 25, 2024.
A drone view shows Honda vehicles parked at the company's automotive assembly plant in Alliston, Ontario, Canada, April 1, 2025. REUTERS/Carlos Osorio

Overview

  • Multiple reports claimed Honda might move production from Canada and Mexico to the U.S. to meet a 90% domestic production target, but the company has denied these plans.
  • Ontario Premier Doug Ford and Innovation Minister Anita Anand confirmed Honda's Alliston, Ontario, plant is operating at full capacity with no changes planned.
  • Honda is reportedly increasing U.S. production by up to 30% over the next two to three years in response to Trump’s 25% tariff on imported vehicles.
  • The Canadian government has offered tariff relief to automakers, contingent on maintaining production in Canada, to safeguard jobs and manufacturing capacity.
  • Other automakers, including Nissan, GM, and Hyundai, are also adjusting production strategies to navigate rising U.S. tariffs.