• Thanks for stopping by. Logging in to a registered account will remove all generic ads. Please reach out with any questions or concerns.

CAN-USA 2025 Tariff Strife (split from various pol threads)

Honda heading south.... with all the jobs

Tariffs Drive Honda to Move S.U.V. Production From Canada to U.S.​

President Trump’s trade war again tests Canada’s new government. Honda is also postponing a major electric vehicle factory in Canada.


In the face of U.S. tariffs, Honda said on Monday that it would shift production of one of its popular vehicles from Ontario to a U.S. factory and postpone an $11 billion plan to make electric vehicles and batteries in Canada.

The announcement came less than a month after Honda denied a report in the Japanese media that President Trump’s tariffs would force it to pull back in Canada.

It also poses a major challenge for Prime Minister Mark Carney of Canada, who won a stunning victory in last month’s election after portraying himself as the leader best suited for dealing with President Trump and the trade war between the two countries.

The United States has imposed a 25 percent tariff on many Canadian autos and auto parts.

Honda’s chief executive, Toshiro Mibe, said in a news conference in Japan that the decision to move the manufacturing of the CR-V sport utility vehicle to the United States was part of the company’s plans to “optimize” production to reduce the effects of tariffs.

 
Honda heading south.... with all the jobs

Tariffs Drive Honda to Move S.U.V. Production From Canada to U.S.​

President Trump’s trade war again tests Canada’s new government. Honda is also postponing a major electric vehicle factory in Canada.


In the face of U.S. tariffs, Honda said on Monday that it would shift production of one of its popular vehicles from Ontario to a U.S. factory and postpone an $11 billion plan to make electric vehicles and batteries in Canada.

The announcement came less than a month after Honda denied a report in the Japanese media that President Trump’s tariffs would force it to pull back in Canada.

It also poses a major challenge for Prime Minister Mark Carney of Canada, who won a stunning victory in last month’s election after portraying himself as the leader best suited for dealing with President Trump and the trade war between the two countries.

The United States has imposed a 25 percent tariff on many Canadian autos and auto parts.

Honda’s chief executive, Toshiro Mibe, said in a news conference in Japan that the decision to move the manufacturing of the CR-V sport utility vehicle to the United States was part of the company’s plans to “optimize” production to reduce the effects of tariffs.


Article has had an edit. CR-V's are built fully in both countries, they're shifting the US bound models made in Canada to the US production line and Canadian production CR-V's are staying in Ontario. Part of this shuffle also includes moving all CR-V's for Global buyers are being moved from the US line into Alliston.

The majority of the CR-Vs made in Canada are shipped to the United States.

Ken Chiu, a spokesman for Honda Canada, said that wherever the production of specific models is moved, the company does not plan to cut “production volume or employment” at its Canadian factory. Honda currently employs about 4,200 people at its plant in Alliston, Ontario, which also builds Civic sedans as well as engines.
 
Article has had an edit. CR-V's are built fully in both countries, they're shifting the US bound models made in Canada to the US production line and Canadian production CR-V's are staying in Ontario. Part of this shuffle also includes moving all CR-V's for Global buyers are being moved from the US line into Alliston.
The overall solution might just be the old Auto Pact requirements - "For every vehicle sold in Canada, one must be built in Canada."

IF we went back to this model we would 'gain' about 4-500,000 MORE vehicles made in Canada each year. That's roughly 2 MORE auto manufacturing plants in Canada. Where I think we would lose jobs would be on the parts manufacturing side, as I believe we build alot more parts than what we consume.
 
Article has had an edit. CR-V's are built fully in both countries, they're shifting the US bound models made in Canada to the US production line and Canadian production CR-V's are staying in Ontario. Part of this shuffle also includes moving all CR-V's for Global buyers are being moved from the US line into Alliston.
Important clarity, thanks for that. Makes sense- US model versus everywhere else is probably some minor changes that are pretty easy to adapt on existing lines at production plants.

This also means the U.S. will lose some vehicle exports, but it will potentially allow the vehicle manufacturer to dodge retaliatory tariffs by exporting from Canada rather than the U.S..
 
Important clarity, thanks for that. Makes sense- US model versus everywhere else is probably some minor changes that are pretty easy to adapt on existing lines at production plants.

This also means the U.S. will lose some vehicle exports, but it will potentially allow the vehicle manufacturer to dodge retaliatory tariffs by exporting from Canada rather than the U.S..
Otherwise…any loss of vehicle manufacturing intended for the Canadian market should result in…wait for it…the Prime Minister announcing 25% tariffs on all Hondas imported from the U.S.
 
The U.S. Court of International Trade has ruled a broad search of Trump’s tariffs as outside his legal authority, including the ‘emergency’ tariffs levied against Canada.


I expect we’ll see the administration attempt to have this stayed pending appeal, and appeal briskly to the U.S. Court of Appeals for the Federal Circuit. Lots of fast litigation to come, I think.

Court order:

 
The U.S. Court of International Trade has ruled a broad search of Trump’s tariffs as outside his legal authority, including the ‘emergency’ tariffs levied against Canada.


I expect we’ll see the administration attempt to have this stayed pending appeal, and appeal briskly to the U.S. Court of Appeals for the Federal Circuit. Lots of fast litigation to come, I think.

Court order:


This is a real hand grenade thrown into his plans on using them as leverage after starting a trade war with... the whole planet.
 
Libertarians in various corners are quite happy.

See here.

So it looks like the end of tariffs will be at the hands of Americans annoyed by the self-inflicted damage after all.
 
Libertarians in various corners are quite happy.

See here.

So it looks like the end of tariffs will be at the hands of Americans annoyed by the self-inflicted damage after all.

With two appellate levels above this decision and a badly captured Supreme Court, we’re a ways away from being able to ‘after all’ this, and losses in court on the legality of unilateral executive action doesn’t mean he won’t go back and try to get stuff through his rather pliant Congress.

This is very good news of course - for trade, for the division of powers, and for the rule of law - but I’d see this as being an ad break in the first period. These tariffs underlie most of Trump’s coercive power. Willingness of other parties to make concessions will cool considerably, and that will piss him off such that he’ll look for what other levers he can pull. If Trump has a bee in his bonnet over tariffs, a summary judgment at the initial level of court is not going to be the end of things.

The markets will still view this and price it in against a headwind of volatility and uncertainty that’s going to continue for a while.
 
With two appellate levels above this decision and a badly captured Supreme Court, we’re a ways away from being able to ‘after all’ this, and losses in court on the legality of unilateral executive action doesn’t mean he won’t go back and try to get stuff through his rather pliant Congress.
The USSC isn't composed of the president's people, and neither is Congress. Only a small number of people in government (mostly in the administration itself) support the tariffs, regardless which excuse - leverage to change border control behaviour, shift of revenues away from income taxes - is advanced.

Other avenues for tariffs will just kick things back to where they were in previous administrations, during which tariffs were not "crises" for other nations, let alone the world.

The only thing to fear is that all levels of Canadian government will be even more prone to continue stalling on removing their various precious trade barriers.
 
Back
Top