Key facts
- Higher US tariffs on Canadian steel and auto imports are scheduled to begin January 1.
- Honda's head of public affairs called the potential tariffs "catastrophic" for the industry.
- Automakers are concerned about the impact of tariffs on costs and plant locations.
- The US and Canada are in talks to ease existing Section 232 tariffs on steel and autos.
- Honda previously indicated it might not build a new North American assembly plant without an extended trade deal.
Higher US tariffs on steel and auto imports from Canada, slated to begin January 1, would be "catastrophic" for the industry, according to Jennifer Thomas, senior vice president of corporate affairs for American Honda Motor Co. Speaking at the Reuters Automotive USA conference in Detroit on Tuesday, Thomas expressed concern that the potential doubling of tariffs would negatively impact the competitiveness of the US auto industry. Automakers are closely monitoring ongoing trade negotiations between the US, Mexico, and Canada, hoping for an extension of their existing trade agreement. The US and Canada are reportedly discussing potential relief from tariffs imposed under Section 232 of US trade law, which include up to a 50% tariff on Canadian steel and a 25% tariff on autos. Honda has previously stated that it may not build a new assembly plant in North America if the trade deal is not extended.