As A Result Of Trump's Tariff, Honda Delays Two Years Of Factory Construction In Canada

JAKARTA - The implementation of the import tariff policy from US President Donald Trump has made a number of automotive companies rotate their strategy in carrying out their global expansion. This also has an impact on the factory expansion plan that has been set by Honda.

Due to the regulation, Honda postponed plans for an EV factory expansion in Canada that spent 10.7 billion US dollars (equivalent to Rp175.4 trillion).

Launching from InsideEVs, Friday, May 16, the investment includes improvements to existing manufacturing plants, as well as several battery and cell manufacturing factories to support the future of Honda electric vehicles.

Although the decision remains unclear, it is reported that the delay will last for the next two years while stopping 1,000 new jobs in Canada.

However, the manufacturer with the "H" logo is upright saying the decision will not harm any work in Honda's manufacturing plant in Canada.

The Japanese automotive manufacturer will evaluate the timing and development of the project in line with changes in market conditions.

Another recent report shows that Ontario politicians are trying to ensure that this is just a delay and not a full cancellation of Honda's investment in Canada.

Honda said that if this tariff continues, the company may have to reorganize its operations to move more production from Canada to ensure its brand persists.

Not only that, but the manufacturer also plans to re-transfer CR-V model production to the US to reduce the impact of the tariff after previously being produced in Ontario, Canada.