A tariff tariff Honda to transfer production from Canada to the United States

In the face of American definitions, Honda said on Monday that it would transform the production of one of its famous cars from Ontario to an American factory and postpone a $ 11 billion plan to make cars and electric batteries in Canada.

This announcement came less than a month after Honda rejected a report in the Japanese media that President Trump’s tariff would force it to retreat to Canada.

It also represents a major challenge for Prime Minister Mark Carney from Canada, who won Amazing victory In the elections last month after photographing himself as the most suitable leader to deal with President Trump and the commercial war between the two countries.

The United States imposed a 25 percent tariff on many Canadian cars and car parts.

The CEO of Honda, Toshiro Maybe, told a press conference in Japan that the decision to transfer the manufacture of the CR-V to the United States was part of the company’s plans to “improve” production to reduce the effects of customs tariffs.

He blamed the slow growth in the electric car market for the decision to stop the expansion of $ 11 billion in the Ontario Factory complex, which would have added the production of battery and electric cars.

The expansion, which was supported by great financial incentives from Canada and Ontario governments, Last year was distinguished by Justin TrudeauThe Prime Minister at the time, as the largest investment by the auto industry company in Canadian history. 1,000 people were expected to be employed and it was part of a series of government -backed moves to change the automotive industry in Canada towards electric cars.

The effect of the CR-V production movement was not immediately known. However, like all car assembly lines in Canada, the majority of CR-VS made in Canada are shipped to the United States.

Honda Canada did not immediately respond to a request for comment. It is currently employing about 4,200 people at its factory in Allison, Ontario, which also builds civilian sedans as well as engines.

Mr. Carney’s office did not immediately respond to a request to comment on Honda decisions. It is scheduled to be divided into the new cabinet on Tuesday.

Honda’s announcement is the latest in a series of moves by the auto industry to withdraw expansion plans in Canada after the definitions of the United States.

Stelantis suspended the factory’s conversion in a Toronto suburb to make gasoline pocket cars. It closed its factory in WindsorOntario, which makes the mini van and the avoidance of muscle cars, a total of three weeks and also reduces their production schedule in the coming weeks.

The Canadian General Motors Company has suspended the production of an electric commercial car in Ontario. The Canadian assembly factory was the only in Ford, in Okfille, Ontario, for nearly a year after the company abandoned plans to make electric cars there. Instead, the factory will eventually start making gasoline pickup trucks.