Honda has decided to halt a $15 billion electric vehicle supply chain in Ontario, impacting numerous Canadian automotive workers.
According to Lana Payne, national president of Unifo – he largest private-sector union in Canada, this decision is a result of the increasing attacks by U.S. President Donald Trump on the electric vehicle sector and international automobile trade, which continue to jeopardize Canadian jobs.
“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.
Honda publicly denied reports a few weeks ago that it planned to move current production from its Alliston plant to the U.S. in response to Trump’s tariffs.
Unifor represents members of the factory supply chain and views any threats to jobs in the Canadian automotive sector as a matter of utmost 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.”
The union is calling on the federal government to take bold action to support the Canadian automotive industry — including substantial investments, job protection, and a clear strategy to facilitate the transition to electric vehicles amid increasing U.S. protectionism and global competition, particularly from China. Among these and other measures, the representative is also urging the federal government to revoke tariff exemption privileges for any automakers in Canada if the promised investment is canceled or shifted to the United States.
Unifor is the largest private-sector union in Canada, representing 320,000 workers across all major sectors of the economy. The union advocates for all workers and their rights, fights for equality and social justice both in Canada and abroad, and strives to create progressive changes for a better future.
