Toyota and Honda face high risk from proposed 50% US tariffs on Canadian vehicles

Toyota and Honda face significant financial and industrial risks due to a proposed 50% US tariff on Canadian-made vehicles, scheduled to take effect on January 1, 2027, under Donald Trump.

As the two manufacturers responsible for over three-quarters of all new vehicles assembled in Canada, their operations are uniquely vulnerable. Canadian production accounts for approximately 17% of Toyota’s US sales and nearly 25% of Honda’s US sales. Key models produced in Ontario for the American market, such as the Toyota RAV4 and the Honda CR-V, could see their profitability compromised by the potential duties.