Slowing demand for EVs and US tariffs impact on Canada’s auto sector force the Japanese automaker to postpone plans for an EV supply chain in Ontario, dealing a severe blow to Canadian EV ambitions.

Honda is the latest automaker to warn of a massive hit to its profits as a result of President Trump's auto tariffs.

Postponing the Canadian EV project is part of the automaker's effort to contain the damage from hefty U.S. tariffs on foreign-made vehicles. Honda said it expects its net profit to drop 70% to 250 billion yen ($1.68 billion) for the year ending March 2026.

Honda said on Tuesday it would postpone by at least two years its large-scale investments to establish an electric vehicle supply chain in Canada. Originally announced in April of last year , the project is valued at $15 billion,

Japanese automaker Honda Motor Co. (HMC) is postponing a $15-billion electric vehicle (EV) project in Ontario as it shifts more production to the U.S. due to American import tariffs. In announcing the Canadian manufacturing pause,

An $11-billion plan to manufacture 240,000 EVs/year, plus batteries, in Ontario is on a two-year hold as the Japanese automaker considers the effects U.S. tariffs on its