Honda warns 50% Canada auto tariffs would be catastrophic for the auto industry. That is a margin and supply-chain risk for automakers with Canadian exposure, and the tape will price tariff odds befor

What happened: President Donald Trump threatened to double tariffs on Canadian vehicles and parts from 25% to 50% if a trade deal is not reached between the two countries. Honda warned that 50% Canada auto tariffs would be catastrophic for the auto industry. Key numbers: Tariffs on Canadian vehicles and parts would rise from 25% to 50%. Why it matters: Honda's warning signals that automakers see the threatened tariff increase as a severe risk to the industry if the two countries fail to reach a trade deal.

President Donald Trump threatened to double tariffs on Canadian vehicles and parts from 25% to 50% if a trade deal is not reached between the two countries. Honda warned that 50% Canada auto tariffs would be catastrophic for the auto industry.

Honda's warning signals that automakers see the threatened tariff increase as a severe risk to the industry if the two countries fail to reach a trade deal.