Toyota and Honda build more than three-quarters of vehicles assembled in Canada.
President Trump announced a 50% tariff on Canadian-built cars, trucks and parts effective January 1, 2027.
Toyota and Honda will likely absorb part of the 50% tariff instead of fully passing costs to US buyers.
Toyota and Honda build more cars in Canada than any other automaker, and that math is about to bite. The two Japanese brands together account for more than three-quarters of all vehicles assembled north of the border, putting them squarest in the path of President Trump's threatened tariff hike.
The number on the table is 50 percent, a tariff on Canadian-built cars, trucks and auto parts that Trump says will take effect January 1, 2027. The plan still faces political and legal uncertainty on both sides of the border. Toyota and Honda now face a choice: eat the cost themselves or pass it on to American buyers already stretched thin on new-car prices.
