Despite a Japanese media report suggesting Honda may shift Canadian production to the United States in response to U.S. auto tariffs, Ontario Premier Doug Ford says the automaker has firmly denied the claim.
According to Japan’s Nikkei financial newspaper, Honda is considering moving enough production of its popular CR-V and Civic models to the U.S. to satisfy 90% of American demand with U.S.-made vehicles—up from the current 70%.
However, Premier Ford says Honda Canada has reassured his office that while the company does aim to boost its U.S. manufacturing footprint, this will not come at the cost of its Canadian operations. “Honda confirmed that its Alliston facility remains at full capacity, with no job losses on the horizon,” said a spokesperson from Ford’s office.
The Alliston, Ontario plant employs approximately 4,200 workers and produced around 375,000 vehicles in 2023. Honda Canada has yet to issue a direct comment on the report.
The controversy follows the April 3 imposition of sweeping 25% U.S. tariffs on imported vehicles, including those from Canada—a move that has sparked concern across North America’s auto sector. The tariffs were introduced despite the countries’ existing free trade agreements.
In response to the tariffs, Honda Canada spokesperson Ken Chiu earlier stated that the company was “evaluating the impacts and taking a measured, thoughtful approach to actively address both immediate and future effects.”
Meanwhile, Ottawa is stepping up. On Tuesday, the federal government announced new financial supports aimed at helping Canadian businesses hit by the tariffs—particularly automakers—stay competitive and continue producing domestically.
It’s a complex time for Honda, which just last year announced a $15-billion investment in Canadian operations, supported by $5 billion in government funds. The investment includes plans to build an electric vehicle battery plant adjacent to its current Alliston facility, signaling a long-term commitment to Ontario’s auto sector.
As speculation swirls, officials and industry watchers will be closely monitoring Honda’s next move—and its ongoing role in Canada’s automotive future.