Honda CANCELLED $15B investment in Canadian EV plants - Blaming Trump's Tariffs!

Honda’s decision to postpone a $15 billion investment in Ontario, Canada, has sent shockwaves through the country’s automotive and electric vehicle (EV) sectors. Announced during an earnings call from Honda’s Japan headquarters, the pause is attributed to U.S. President Donald Trump’s 25% tariffs on Canadian auto imports and a global slowdown in EV market growth. The investment, unveiled in 2024, aimed to establish four EV plants in Alliston, Ontario, creating Canada’s first comprehensive EV supply chain. It promised 1,000 jobs, 240,000 vehicles annually, and a $5 billion government contribution, leveraging Canada’s rare minerals for cost-effective battery production. Hailed by Premier Doug Ford as the largest auto manufacturing deal in Canadian history, the project was a cornerstone of Honda’s goal to go fully electric by 2040. However, the company now plans to delay the project for at least two years, with a potential reassessment that could lead to cancellation. Ontario’s Minister of Economic Development, Vic Fedeli, emphasized Honda’s commitment to existing operations, ensuring no immediate impact on current jobs or production. The decision, driven by a 59% profit drop and trade uncertainties, reflects broader challenges faced by Japanese automakers like Toyota and Nissan. Canada’s EV ambitions and economic growth are at risk, raising concerns about the country’s role in the global EV supply chain. The postponement underscores the far-reaching effects of U.S. trade policies and market volatility, leaving Canada’s automotive future uncertain as stakeholders await Honda’s next move.

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