During a Reuters automotive conference in Detroit, Jennifer Thomas, senior vice president of corporate affairs at American Honda Motor Co., expressed grave concerns about President Trump's threat to double tariffs on Canadian vehicles and parts from 25% to 50% if a trade agreement is not reached by January 1.
She emphasized that such a move would be disastrous for the entire automotive sector, which relies heavily on cross-border supply chains. Thomas advocated for a trilateral trade deal that includes Mexico, similar to the United States-Mexico-Canada Agreement (USMCA), to ensure competitiveness for the U.S. automotive industry. Her comments come in light of the U.S.
Trade Representative's recent announcement that the USMCA would not automatically extend, raising further uncertainty. Despite the challenges, Thomas remains cautiously optimistic about ongoing trade discussions between the U.S. and Canada, particularly regarding the easing of tariffs on critical materials.
Honda, as the second-largest vehicle producer in Canada, is particularly vulnerable to these tariff changes, as over 60% of its U.S. sales come from domestically manufactured vehicles. Thomas highlighted the need for a stable trade environment to maintain the industry's success and competitiveness against foreign manufacturers benefiting from lower tariffs