Toyota and Honda may get stuck with the bill for Trump's Canada tariffs
TOKYO: US President Donald Trump is targeting Ottawa with a proposed 50 per cent tariff on Canadian car imports — but Japan's Toyota and Honda may end up footing the bill.
US President Donald Trump has proposed a 50% tariff on Canadian car imports, potentially affecting Japanese automakers Toyota and Honda. These two companies account for more than three-quarters of all cars made in Canada, and they could face significant financial losses if the tariffs go into effect on January 1. Canadian-built cars make up nearly a quarter of Honda's US sales and 17% of Toyota's, making them vulnerable to the proposed tariffs.
The US remains Toyota and Honda's biggest market, where Chinese rivals like BYD are not allowed. If the tariffs are implemented, both companies may have to close some of their Canadian assembly lines, leading to the loss of around 427,000 jobs indirectly supported by the Canadian auto industry. The proposed tariffs are part of Trump's trade policies that have put the global auto industry in a difficult position.
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