Honda said its plan to build an EV supply chain in Alliston, Ont. — which was first announced in April 2024 — would be paused for about two years, due to uncertainty caused by tariffs.

Honda announced the postponement on Tuesday after forecasting a 59 per cent profit decline in the current fiscal year.

During the announcement of its 2024-2025 fiscal year financial results on May 13, Honda CEO Toshihiro Mibe stated that in the current fiscal year, which began on April 1 and will end on March 31 next year, Honda expects the impact of the Trump Administration’s tariff policy to hammer 650 billion yen (~$4.34 billion) off its operating profits.

Premier Doug Ford says he will hold auto-manufacturers "accountable" and ensure they continue making vehicles in Ontario after Honda postponed a major EV project in the province.

Among the major government-backed EV-making investments announced in the past few years, Honda’s stands to be both the biggest and the best value from a Canadian perspective