A pending increase in U.S. tariffs on steel and auto imports from Canada starting Jan. 1 would be “catastrophic” for the industry, Honda Motor’s head of public affairs said on Tuesday.
Automakers are closely watching talks between the U.S., Mexico and Canada, hoping the countries extend a longstanding trade deal. The three countries’ auto industries are tightly intertwined, and higher tariffs could raise costs and affect where companies such as Honda build new plants.
“We need that trilateral agreement to stay in place in order for the U.S. industry to be competitive. It’s integral to our success,” said Jennifer Thomas, senior vice president of corporate affairs for American Honda Motor Co, speaking at the Reuters Automotive USA conference in Detroit.
The auto industry has been grappling with tariffs since early 2025, when U.S. President Donald Trump’s administration placed varying tariff rates on imports from multiple countries, including Mexico and Canada.
“I am cautiously optimistic that cooler heads will prevail, and we will avoid that Jan. 1 doubling of the tariffs, because that really would be catastrophic just for the entire industry,” Thomas said.
The U.S. and Canada are working on a deal to ease U.S. tariffs on Canadian steel and autos, Reuters reported on Monday. Those talks are aimed at tariffs imposed under Section 232 of US trade law, including a tariff of up to 50 per cent on Canadian steel and a 25 per cent tariff on autos, with negotiators discussing potential relief from those duties.
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Unlike trade deals with the EU, Japan or South Korea, the trade pact between Mexico, Canada and the U.S. has specific North American content requirements known as “rules of origin.”
In the negotiations with Mexico, the U.S. has demanded that all North American-built vehicles contain 50 per cent U.S.-specific content, a figure that would drive regional required content up to 82 per cent to qualify for U.S. benefits, sources familiar with the talks have said.
Vehicles assembled in Mexico and Canada would likely still be charged some level of tariffs, U.S. Trade Representative Jamieson Greer has said.
Thomas and other auto executives said that rules-of-origin requirements are not in place in other trade deals.
“Right now, North America is at an unfair disadvantage,” Thomas said.
In August, Honda said it may not build an eighth assembly plant in North America unless the trade deal between the three countries is extended.
“We are at capacity, and so we’re exploring all options. And at the end of the day, we’re going to continue to invest in the U.S.,” Thomas said.
trade deal between 3 countries should read “among “
@Malcolm Amber
Poland GDP is 27 out 29 compared to other European countries. International companies would not setup shop there to serve local population. The only thing going for them is low salary, meaning cheap labor.
@ Anonymous
October 28, 2026 at 10:19 am Then explain to me why there are so many highly populated nations that are Third World dirt poor? Poland isn’t poor or heavily populated.
It took over 10 years for Liberal voters to determine Trudeau was a fraud. How long till they find Carney is much the same? Elbows Up!
It will be catastrophic for the US industry and raise prices of behicles on both sides of the border. Trump will probably TACO!
Orange Jesus is playing 4D chess and is absolutely not eating the chess pieces. Just two more weeks until the new Golden Age hits.
Guess what does big markets countries have in common? Big population. Getting immigrants, brings innovation and the market to sell. Big population is one of the key to a becoming a power house. We remain small, we stay small. Racist don’t get that.
Guess they will be heading to the states aren’t your elbows tierd yet libbys