President Donald Trump said Monday that U.S. tariffs on Canadian-built cars, trucks, automotive parts and steel would rise to 50 per cent on Jan. 1, 2027, doubling the existing 25-per-cent auto tariff. The announcement followed the collapse of Canada-U.S. trade negotiations.
That makes the 50-per-cent threat less a question of whether Honda shuts Alliston tomorrow and more a question of whether Alliston gradually loses future production.
If the 50-per-cent tariff actually survives into 2027, Alliston’s problem becomes structural rather than cyclical. Honda could continue operating the plant while increasingly allocating new models, retooling and investment elsewhere. That is the scenario New Tecumseth and Ontario should arguably be most concerned about.
