American Honda Senior Vice President Jennifer Thomas warned of "catastrophic" consequences for the auto industry. She cited a potential doubling of U.S. tariffs on Canadian vehicles and parts. Thomas made these comments at an automotive conference in Detroit amid ongoing trade tensions.
The warning precedes a January 1, 2027, deadline. President Trump has threatened to raise tariffs from 25% to 50% by this date. This increase would occur if a new trade deal with Canada is not reached. Automakers express concern over these potential tariffs. Their supply chains are highly integrated. Parts often cross the U.S.-Canada border multiple times during vehicle production.
Thomas emphasized the need to maintain the trilateral United States-Mexico-Canada Agreement (USMCA). This agreement ensures the U.S. industry's competitiveness. Despite her warning, Thomas expressed cautious optimism. She believes negotiators will reach an agreement, averting the tariff increase.