By Adriano Marchese

Honda Canada will continue to operate its manufacturing plant in Ontario at full capacity for the foreseeable future, a spokesperson said.

The automaker on Tuesday confirmed that its manufacturing plant in Alliston, Ontario, will continue normal operations, with no planned changes at this time.

President Trump's escalating tariff situation has sent jitters throughout the automotive sector across North America. He implemented a 25% levy on imported automobiles and certain auto parts, including those from Canada, however, goods that comply with the USMCA trade agreement are exempt from these tariffs.

"We constantly study options for future contingency planning and utilize short-term production shift strategies when required, to mitigate negative impacts on our business," the spokesperson said in an email.

Honda Canada said that over two-thirds of all Honda vehicles sold in Canada are built in Canada, and 99% of vehicles sold there are sourced from North American facilities.

The spokesperson said Honda Canada's established North American strategy of flexible, localized manufacturing allows it to quickly adapt to market dynamics across the region, including coordinating production shifts for specific models at each facility to cater to various regions and emerging markets based on customer demand.

So far, Canadian demand has been enough to maintain full capacity. The spokesperson added that Canadian production will remain at full capacity thanks to domestic sales, which are up 9% in the first quarter of this year, led by the Canadian-built Honda Civic, and the Honda CR-V.

Earlier on Tuesday, a report by Nikkei suggested that Honda was considering moving some auto production out of Canada and Mexico and into the U.S. in response to Trump's tariffs on imported vehicles. The spokesperson confirmed that this wasn't an announcement by Honda and wouldn't comment on the specifics of the report.

The news follows another report on Tuesday by Reuters which said that Japanese automaker Nissan plans to reduce Japanese production of one of its most popular models in the U.S. in response to the import tariff, citing an unidentified person familiar with the matter.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

April 15, 2025 14:03 ET (18:03 GMT)

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