Higher tariffs on Canadian imports would be 'catastrophic,' Honda exec says
HMC•A Honda executive warned that a planned January 1 increase in U.S. tariffs on Canadian steel and auto imports would be “catastrophic” for the industry. The U.S. and Canada are negotiating possible relief from tariffs of up to 50% on steel and 25% on autos.
1. Tariff warning
Jennifer Thomas, senior vice president of corporate affairs for American Honda Motor Co, said the auto industry needs the trilateral trade agreement among the U.S., Canada and Mexico to remain in place to stay competitive. She said she was cautiously optimistic the countries would avoid a January 1 doubling of tariffs, which she called potentially catastrophic for the industry.
2. Trade talks and investment
The U.S. and Canada are working on a deal to ease tariffs on Canadian steel and autos, with negotiators discussing potential relief from duties of up to 50% on steel and 25% on autos. A sticking point in North American trade talks is the rules of origin for vehicle parts and regional content requirements. Honda said in August it may not build an eighth assembly plant in North America unless the trade deal is extended; Thomas said the company is exploring options and will continue to invest in the U.S.
