Honda Canada denies U.S. relocation claims, auto sector remains fearful

While Honda Canada has denied recent reports saying the company would be moving its Canadian leg of operations to the United States in response to President Trump’s auto tariffs any time soon, it has still sparked fear among the auto sector across the country.

North America’s auto manufacturing systems have long been connected, and the combined auto, steel and aluminium tariffs threaten to dismantle a highly successful industry in Canada.

The news of Honda’s reported plans to shift the production of CRV’s and Civics out of Canada came from a Japanese news outlet, though Canadian officials and Honda Canada themselves have since denied the validity of the statements.

Honda said the company is “confident” in its ability to continue to navigate the current market conditions but will study options for future contingency plans.

As part of the relief plan introduced by the Federal government, automakers that continue to manufacture in Canada will get an exemption from Ottawa’s retaliatory measures, allowing a certain number of U.S.-assembled vehicles to be imported free of counter tariffs.