Canada Industry Minister Suggests 'Good News' in Offing From Honda

By Paul Vieira

OTTAWA--Canada's Industry Minister Melanie Joly hinted that Honda Motor will unveil new plans at its main Canadian manufacturing facility near Toronto that promise to be a boon for the local economy.

"What I can tell you is I'm confident good news is coming," Joly told reporters Monday in a virtual media briefing from Tokyo. She had wrapped up a roughly weeklong visit to China and Japan to meet with automakers. "We're working with the company, so stay tuned."

She didn't elaborate. A spokesman for Honda in Canada didn't immediately return a request for comment.

Last month, Honda formally shelved plans for a $11 billion electric-vehicle supply chain project in Canada, at its main manufacturing facility in Alliston, Ontario, about 42 miles northwest of Toronto, due to evolving business conditions and a change in corporate strategy. Honda's Canadian operations produced about 400,000 vehicles last year, and the company said it on pace to match that level based on year-to-date figures.

In remarks this month at auto-industry conference, Honda Canada's Chief Executive Dave Jamieson warned that Canadian industrial policy isn't aligned with neither environmental nor trade initiatives.

"When trade uncertainty is looming, regulations are evolving, and government policies are misaligned to consumer demand, it becomes increasingly difficult to move forward with capital-intensive, long-term investments of this scale," Jamieson said of the company's decision to indefinitely suspend its Canadian EV project. "Canada loses its competitive advantage."

He warned the present global economic backdrop marks a "direct test of both Honda's footprint in Canada and the long-term future of Canadian auto manufacturing."

Canada is seeking tariff relief from Washington on its U.S.-bound auto exports. Auto exports to the U.S. face a 25% tariff and Canada is demanding relief on sector-specific duties in exchange for U.S.-led changes to the existing U.S.-Mexico-Canada trade treaty, or USMCA. Officials from the three countries are set to meet regarding USMCA and whether it should be renewed for another 16 years.

Jamieson said keeping USMCA intact "is critical for Honda Canada and the long-term viability and competitiveness of the entire sector."

Write to Paul Vieira at paul.vieira@wsj.com

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June 22, 2026 10:58 ET (14:58 GMT)