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Tariffs: Honda and Toyota Committed to Canada

Honda's plant in Alliston, Ontario | Photo: Honda
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Daniel Rufiange
The automakers accounted for about two-thirds of all vehicles assembled in Canada in 2024.

One of the stated goals of the U.S. administration’s auto tariffs set to take effect on April 3 on vehicles imported into the U.S. is to draw vehicle production back from Mexico and Canada. Many are wondering what automakers that assemble vehicles in Canada will do.

Besides the three major American manufacturers, which are strongly present in Canada, Honda and Toyota have been established in Ontario for a long time. In the case of Toyota, its commitment to the country dates back to 1964. For Honda, 2026 will mark the 40th anniversary of the opening of its first plant in Ontario.

Together, the two Japanese automaker accounted for some two-thirds of automotive production in Canada in 2024.

Late last week, Toyota and Honda confirmed their continued commitment to the Canadian market and to Canadian workers. Each says it has no intention of abandoning the country.

More specifically, Toyota Canada and Honda Canada stated that production of their models will continue in their Ontario assembly plants.

Cyril Dimitris, Toyota Canada president and CEO, at the 2025 Toronto Auto Show
Cyril Dimitris, Toyota Canada president and CEO, at the 2025 Toronto Auto Show | Photo: Toyota

Toyota
Toyota spokesperson Philippe Crowe told Automotive News that “While this is still a highly fluid situation, we have no plans to change our production within the foreseeable future. Our vehicles are in high demand, and we will continue to build to plan.” He added that the company is engaging with authorities to find a lasting solution to the tariffs.

Toyota built 533,584 units of the RAV4 SUV, as well as the Lexus NX and RX at its facilities in Woodstock and Cambridge last year. The company employs around 8,500 workers.

Inside Honda's plant in Alliston
Inside Honda's plant in Alliston | Photo: Honda

Honda
Honda spokesperson Ken Chiu told Automotive News that production lines at the automaker's three-plant campus in Alliston continued to operate, “as we prioritize our more than 4,000 manufacturing associates and our long-standing business operations in Canada.”

He added that “We are working with our manufacturing, parts, trade and logistics providers across North America to understand the impact of announced U.S. tariffs and we will adopt a measured, thoughtful approach to actively address both immediate and future effects, ensuring our continued success in Canada.”

Honda built 206,455 Civics and 214,095 CR-Vs in Alliston in 2024. The company also has an engine plant where it manufactures 2.0L 4-cylinders for Civics assembled both locally and in Greensburg, Indiana.

Chiu noted that Honda has overcome a whole series of industrial challenges during its nearly 40 years of operation in Alliston and that the company is “confident in its ability to effectively navigate current market conditions.”

Given what has transpired in the last few months, there’s still no certainty the tariffs as currently outlined will actually take affect as scheduled on the stroke of midnight of April 2/3. We shall see.

Daniel Rufiange
Daniel Rufiange
Automotive expert
  • Over 17 years' experience as an automotive journalist
  • More than 75 test drives in the past year
  • Participation in over 250 new vehicle launches in the presence of the brand's technical specialists