Honda executive says doubled Canada auto tariffs would be catastrophic

The short version

• Jennifer Thomas of American Honda Motor Co. warned that doubled tariffs on Canadian autos would be catastrophic for the industry without a deal.[CNBC]
• President Donald Trump has threatened to raise tariffs on Canadian vehicles and parts from 25% to 50% on Jan. 1 if no deal is reached.[CNBC]
• Thomas said an ideal arrangement would include Mexico in a trilateral deal like USMCA.[CNBC]
• Thomas said she is cautiously optimistic the tariff increase will be avoided, so the outcome remains unresolved.[CNBC]

Key facts

• Jennifer Thomas, senior vice president of corporate affairs at American Honda Motor Co., warned at a Reuters automotive conference in Detroit that a 50% tariff on Canadian vehicles would be catastrophic for the industry.[CNBC]
• Trump has threatened to double tariffs on Canadian vehicles and parts from 25% to 50% on Jan. 1 if the two countries do not reach a deal.[CNBC]
• Thomas said that ideally the countries would include Mexico in a trilateral deal like the United States-Mexico-Canada Agreement.[CNBC]
• Thomas said she is cautiously optimistic that cooler heads will prevail and avoid the doubling of tariffs.[CNBC]
• Honda reports that more than 60% of the vehicles it sells in the U.S. are manufactured domestically across multiple U.S. assembly plants.[CNBC]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.

• Honda warns 50% Canada auto tariffs would be catastrophic for auto industryCNBC