Suryaa Business Desk: Serious trade concerns are looming over the North American automobile industry. On vehicles and parts imported from Canada... Serious trade concerns are looming over the North American automobile industry. A senior official of American Honda Motor has warned that if the US tariffs on imported vehicles and parts from Canada are doubled from 25 percent to 50 percent, it will be very disastrous for the entire auto sector.
American Honda Corporate Affairs Senior Vice President Jennifer Thomas made these sensational comments at an international conference in Detroit. US President Donald Trump's deadline to impose 50 percent tariffs on Canadian auto products from January 1 next year if a new trade agreement is not reached between the US and Canada by the end of this year is unsettling the auto sector. A Honda representative expressed concern that if such a harsh tax burden were imposed on the North American market, where the supply chain is interconnected, the cost of vehicle production would increase exponentially and ultimately have a severe impact on consumers. The industry wants a comprehensive regional trade framework with Mexico rather than bilateral agreements.
Analysts believe that since Canada is a key partner in the North American automobile manufacturing sector, if the tariffs go into effect, not just Honda, but all major carmakers will have to consider production cuts and plant changes. As the year draws to a close, global automobile companies are hoping that diplomatic talks will be concluded and the burden of tariffs lifted.
