Honda Moves CR-V Production to U.S., Delays $11B EV Project in Canada Due to Tariffs

In response to mounting U.S. tariffs, Honda announced it will relocate production of its popular CR-V SUV from Ontario, Canada to a U.S. facility. The company also revealed plans to delay an $11 billion electric vehicle and battery factory originally intended for Canada.

This decision marks a setback for Canada’s efforts to lead in electric vehicle manufacturing. The previously announced expansion in Alliston, Ontario—touted as Canada’s largest auto investment—was expected to generate over 1,000 jobs and solidify the country’s green energy future.

Honda’s CEO, Toshiro Mibe, cited both tariff pressures and slower-than-expected growth in the EV market as reasons behind the strategic shift. While Honda assures that Canadian production volume and jobs will be maintained, the future of its Ontario plant remains uncertain.

The move comes as Canada’s newly elected Prime Minister Mark Carney faces his first major economic test in navigating cross-border trade tensions. His office has not yet commented on Honda’s announcement.

This isn’t an isolated case. Several automakers, including Stellantis, GM, and Ford, have scaled back or halted their Canadian operations due to the ongoing U.S.-Canada trade rift. Plants across Ontario have seen delayed or suspended EV and vehicle production as a result.

As Canada reconsiders its role in North America’s auto industry, the fallout from trade policy remains a critical challenge for its green transition and economic future.