Toyota, Honda face biggest hit from Trump’s proposed 50% tariff on Canadian cars
Tariffs could force both automakers to close some Canadian assembly lines, analysts say
US President Donald Trump has proposed a 50% tariff on Canadian car imports, which could have a significant impact on Japanese automakers Toyota and Honda. According to analysts, these tariffs could force both companies to close some of their Canadian assembly lines, as Japanese-built cars account for more than three-quarters of all vehicles produced in Canada.
Honda relies heavily on Canadian-built cars, with 17% of its US sales coming from vehicles manufactured in Canada, while Toyota experiences a 17% hit from Canadian-made cars in the same market segment. If the tariffs come into effect on January 1, 2026, as proposed, the Japanese automakers may face a major challenge in redirecting their Canadian production to other markets and finding ways to compensate for the loss of US market share, which is crucial for their business.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
