Trump policies stall Honda EV investment, further threatening Canadian auto jobs

TORONTO, May 13, 2025 /CNW/ - Honda's decision to stall a $15 billion electric vehicle supply chain in Ontario is the latest blow to Canadian autoworkers, as U.S. President Donald Trump's escalating attacks on the EV sector and cross-border auto trade continue to put Canadian jobs at risk.

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"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. "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."

Honda has delayed plans to build an electric vehicle supply chain in Ontario for "approximately two years". The original plan, revealed in April 2024, promised four new manufacturing facilities and up to 240,000 EVs built annually, including a new EV assembly plant and battery production facilities in Alliston.

Just weeks ago, Honda was forced to publicly deny reports that it intended to shift current production from its Alliston plant to the U.S. in response to Trump's tariffs.

Unifor does not represent workers at the Honda Alliston plant but does represent members in the plant's supply chain and takes any threat to Canadian auto jobs as a matter of grave importance. 

The move follows ongoing job loss in Canada's auto sector. Last month, General Motors paused production of its BrightDrop electric van at the CAMI Assembly Plant in Ingersoll, quickly followed by announced plans to reduce a shift at Oshawa Assembly Plant this fall— both tied to Trump tariffs on Canadian-assembled vehicles.

On April 3, the Trump Administration imposed a 25% tariff on Canadian-made vehicles. While Canada responded with matching tariffs, the U.S. has strategically spared Canadian-made auto parts, aiming to protect U.S. production while pressuring automakers to move assembly operations south.

"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."

Unifor is urging the federal government to respond with bold action to defend Canadian auto manufacturing — including strong investment, job protections, and a clear strategy to support the EV transition amid growing U.S. protectionism and global competition, especially from China. Unifor is also calling on the federal government to revoke tariff-free privileges to any automakers in Canada if promised investment is cancelled or shifted to the United States.

Unifor is Canada's largest union in the private sector, representing 320,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future. 

SOURCE Unifor

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