Canadian auto manufacturing faces another setback as Honda postpones plans to build electric vehicle facilities in Ontario, citing U.S. trade policies that union leaders describe as “economic sabotage.”
The Japanese automaker has delayed its planned $15 billion electric vehicle supply chain investment in Ontario for “approximately two years,” becoming the latest in a string of automotive companies scaling back Canadian operations since the introduction of U.S. tariffs on Canadian-assembled vehicles.
Honda’s original plan, announced in April 2024, included four new manufacturing facilities in Ontario capable of producing up to 240,000 electric vehicles annually, including a new assembly plant and battery production facilities in Alliston.
“Trump’s rollback of EV policies and his punishing tariffs on Canadian-made vehicles are killing jobs week after week and threatening the future of our industry,” said Unifor National President Lana Payne.
Pattern of automotive job losses
The Honda delay follows recent production cuts at other major automotive facilities in Ontario. Last month, General Motors paused production of its BrightDrop electric van at the CAMI Assembly Plant in Ingersoll and announced plans to reduce a shift at its Oshawa Assembly Plant this fall.
Both GM decisions were linked to the 25% tariff imposed on Canadian-made vehicles by the Trump administration on April 3. While Canada has responded with matching tariffs, the U.S. strategically excluded Canadian-made auto parts from these measures.
“This isn’t about fair trade — it’s economic sabotage. The U.S. policy shifts are designed to bleed Canadian operations and push production south of the border. Workers, families, and entire communities are paying the price,” said Payne.
Calls for government action
Unifor, which represents 320,000 Canadian workers including many in the automotive supply chain, is urging the federal government to implement stronger measures to protect the industry. The union is calling for increased investment, job protections, and a comprehensive strategy to support electric vehicle manufacturing in the face of U.S. protectionism.
The union has specifically requested that the government revoke tariff-free privileges for any automakers that cancel promised investments in Canada or shift production to the United States.
Honda recently denied reports that it planned to move current production from its Alliston plant to the U.S. in response to the tariffs. While Unifor does not represent workers at the Honda plant, the union represents members in its supply chain.
“These policies are designed to intimidate companies into abandoning Canada,” said Payne. “But Canada is still an important market for vehicle sales outside the U.S. If automakers want to keep selling to Canadian drivers, they need to keep investing in Canadian plants.”
