Ontario Premier Doug Ford says he has been told that a media report about Honda planning to switch some car production from Canada to the United States is “not accurate.”
Ford told reporters that he spoke to the president of Honda Canada, who will be making a statement to clarify the report from Reuters, which cited Japanese newspaper Nikkei and quickly stirred fears of job losses amid U.S. President Donald Trump’s trade war.
“They want to increase production down in the U.S., they’re at 100 per cent capacity right now, so they’re going to make a statement. I’ll let them make their statement, but they’re saying that’s not accurate,” Ford said about the report.
“We’re going to keep Honda here, and I’ll do everything I can to protect the people and their jobs.”
Nikkei reported on Tuesday that Honda is considering switching some car production from Canada and Mexico to the U.S., aiming for 90 per cent of cars sold in the country to be made locally in response to new U.S. auto tariffs.
Global News has not independently verified this report but has reached out to Honda Canada for comment.
Industry Minister Anita Anand, who is running for re-election in the Ontario riding of Oakville East but retains her ministerial role during the campaign, said she is in “close contact” with Honda and will be meeting Honda Canada’s CEO later on Tuesday to discuss the matter.
“We are aware of the unconfirmed reports of future changes to Honda’s production plans for Canada,” Anand said in a post on X, formerly known as Twitter.
“I am in close contact with the company, and Honda has communicated that no such production decisions affecting Canadian operations have been made, and are not being considered at this time.”
Those reported plans were condemned by federal party leaders on Tuesday as “an attack” on the country’s auto sector.
Speaking at a campaign stop in St-Eustache, Que., Liberal Leader Mark Carney said the Honda news “gives us a sense of the scale of the attack on our auto sector and other sectors” as a result of Trump’s trade war.
Trump has imposed multiple steep rounds of tariffs on Canada, including the country’s auto sector.
Carney said Trump’s trade actions are “misguided” and its impacts are already being felt on both sides of the border.
Carney said Trump’s tariffs are an attempt to “pull apart” the North American automobile sector, which he said is “the most integrated industrial manufacturing sector in the world.”
“We’re seeing some of the impacts in the short term of that with layoffs for some of our automakers, potential shifts in production if this situation remains, huge increase in costs ultimately to American consumers, obviously Canadian consumers,” Carney said.
He said he has had a number of conversations with CEOs of automakers in Canada and global CEOs, adding that “we are very seized with the issues” impacting the industry.
Conservative Leader Pierre Poilievre said “Trump deserves nothing but condemnation for the unfair targeting of Canada.”
“While he’s lifting tariffs and backing down on tariffs all around the world, he continues to tariff our auto sector,” Poilievre told reporters in Montreal.
NDP Leader Jagmeet Singh said the Honda news is “deeply concerning.”
“This is potentially going to impact thousands of jobs in Canada and have a devastating impact on the automobile sector for the long term,” he said during a new conference in Montreal.
“It really highlights how we need to really fight back and get these tariffs removed, make sure that we can strengthen our automobile sector.”
According to the Nikkei report, Honda plans to increase U.S. vehicle production by as much as 30 per cent over two to three years in response to Trump’s decision to put a 25 per cent levy on imported vehicles.
A potential move to the U.S. could have a big impact on thousands of Canadian workers employed at the manufacturing facility in Alliston, Ont.
Honda’s operation in Alliston has about 4,200 employees and produced around 375,000 vehicles in Canada in 2023.
On Monday, Trump suggested that he might temporarily exempt the auto industry from tariffs he previously imposed on the sector, to give carmakers time to adjust their supply chains.
“I’m looking at something to help some of the car companies with it,” Trump told reporters gathered in the Oval Office.
The Republican president said automakers needed time to relocate production from Canada, Mexico and other places, “and they need a little bit of time because they’re going to make them here, but they need a little bit of time. So I’m talking about things like that.”
The statement hinted at yet another round of reversals on tariffs as Trump’s onslaught of import taxes has panicked financial markets and raised deep concerns from Wall Street economists about a possible recession.
— with files from Reuters, The Canadian Press and The Associated Press