Business · Trade · 8 hrs ago
Honda executive warns 50% Canadian auto tariffs would be catastrophic
Honda executive Jennifer Thomas warned that higher U.S. tariffs could severely harm the auto industry if the United States and Canada fail to reach a trade deal by the end of the year.
President Donald Trump has threatened to raise tariffs on Canadian vehicles and parts from 25% to 50% on Jan.
1.
The proposed tariffs affect vehicles and parts moving between Canada and the United States, which are linked through cross-border manufacturing.
Thomas said Honda wants the United States, Canada and Mexico to preserve a shared North American trade framework rather than make separate two-country deals.
The USMCA, which replaced NAFTA and took effect in 2020, is now under annual review rather than being automatically extended.
Tariff uncertainty could weaken the region's auto industry, as parts regularly cross borders and the United States competes with countries that have lower vehicle tariffs.
Thomas said she is cautiously optimistic after reports that U.S.-Canada trade talks have resumed, but no new deal is confirmed.
Honda executive Jennifer Thomas warned that raising U.S. tariffs on Canadian vehicles and parts from 25% to 50% would be catastrophic for the auto industry.
President Donald Trump has threatened the increase from Jan. 1 if the U.S. and Canada do not reach a trade deal.
Thomas urged the U.S., Canada and Mexico to preserve a trilateral North American trade framework.
She said she was cautiously optimistic that talks could prevent the tariff increase.
Honda says more than 60% of the vehicles it sells in the U.S. are made domestically.
- Who
- Jennifer Thomas, senior vice president of corporate affairs at American Honda Motor Co., warned about the potential impact.
- What
- She said doubling tariffs on Canadian vehicles and parts to 50% would be catastrophic for the auto industry.
- When
- She made the comments Tuesday, Oct. 27, 2026. The threatened tariff increase is set for Jan. 1 if no deal is reached.
- Where
- Thomas spoke at a Reuters automotive conference in Detroit.
- Why
- Trump has threatened the increase if the U.S. and Canada do not reach a trade deal. Thomas said the industry needs a trilateral agreement to remain competitive.
Honda executive Jennifer Thomas
President Donald Trump
Trade framework
Honda executive Jennifer Thomas
Thomas urged the U.S., Canada and Mexico to preserve a trilateral North American trade arrangement.
President Donald Trump
Trump has threatened to raise tariffs on Canadian vehicles and parts if the U.S. and Canada do not reach a deal.
Tariffs
Honda executive Jennifer Thomas
Thomas said raising tariffs to 50% would be catastrophic for the auto industry.
President Donald Trump
Trump has threatened to double the tariffs from 25% to 50%.
The United States-Mexico-Canada Agreement took effect.
Trump threatened to double tariffs on Canadian vehicles and parts if no deal could be reached.
Thomas warned at a Reuters automotive conference in Detroit that the tariff increase would be catastrophic.
The threatened increase from 25% to 50% is set to take effect if the U.S. and Canada do not reach a deal.
- Threatened tariff rate
- 50%, up from 25%
- Planned start date
- Jan. 1
- Speaker
- Jennifer Thomas, senior vice president of corporate affairs at American Honda Motor Co.
- Conference location
- Detroit
- Honda U.S. sales
- More than 60% of the vehicles Honda sells in the U.S. are made domestically
3 sources
What people are saying
That really would be catastrophic for the entire industry
Our message has been clear: We need that trilateral agreement to stay in place in order for the U.S. industry to be competitive
It's integral to our success.
I never thought I would see the North American region be put at a disadvantage like this