Doubling U.S. tariffs on Canadian vehicles would damage the North American auto industry, an American Honda executive warned, as negotiations between Ottawa and Washington continue without an agreement.

Speaking at the Reuters Automotive USA conference in Detroit on October 27, Jennifer Thomas, American Honda’s senior vice-president of corporate affairs, described the threatened January 1 increase as “catastrophic” for the industry.

“We need that trilateral agreement to stay in place in order for the US industry to be competitive,” Thomas said, referring to the Canada-United States-Mexico trade agreement.

Reuters reported that Washington and Ottawa are discussing relief from Section 232 duties, including a 25 per cent auto tariff and duties of up to 50 per cent on Canadian steel. President Donald Trump has announced a 50 per cent rate on Canadian auto imports from January 1, 2027.

His administration has defended its auto tariffs as necessary to protect national security and rebuild America’s industrial base. Its original March 2025 proclamation also allowed approved U.S. content to be excluded when calculating duties on qualifying North American vehicles.

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Honda’s warning comes from a company with substantial American operations. Its U.S. operations page lists 12 manufacturing plants, 30,000 associates and 600 original equipment suppliers across more than 30 states. Honda says more than 60 per cent of its vehicles sold in America in 2025 were manufactured there.

The company said in August that another North American assembly plant could depend on extending the regional trade agreement. Thomas said Honda was operating at capacity and would continue investing in the United States, Reuters reported.

Negotiators have yet to announce a breakthrough in trade talks, despite appearing to be near a deal in August before Canada backed away from the agreement. A Canadian official told Reuters on October 28 that progress had been limited. The White House said Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer had held discussions with Canadian counterparts in recent days.

Canadian taxpayers also have money committed to the sector. Rebel News reported that Ontario paid Honda Canada C$19.7 million in the 2025–26 fiscal year, citing a Fraser Institute examination of provincial public accounts.

The latest talks are focused on steel and automotive duties. Prime Minister Mark Carney said Wednesday that Canada was prepared to pursue an agreement benefiting both countries, but that the conditions for signing one were not yet in place.