Honda Motor Co., Ltd on Tuesday released new details explaining why it is delaying its planned $15 billion investment in a battery and electric vehicle complex in Ontario by aroun

Honda said its plan to build an EV supply chain in Alliston, Ont. — which was first announced in April 2024 — would be paused for about two years, due to uncertainty caused by tariffs.

Honda has assured Canada that no jobs will be lost and it is committed to major electric vehicle investments in the country, Industry Minister Melanie Joly said on Wednesday, in the wake of the Japanese carmaker announcing it would put on hold a plan to build an EV supply chain in Canada.

An incredibly popular Japanese SUV is moving from Canada to Ohio. Welcome the Honda CR-V as it gets built in a state primarily known for building the Jeep Wrangler. Honda SUVs that are built in Canada will be shipped to other markets.

Honda is postponing its $10.7 billion expansion in Ontario to make EVs and EV components for two years. The brand cites reduced profits from U.S. tariffs and softer-than-expected demand for EVs in the U.S. and Canada.

During the announcement of its 2024-2025 fiscal year financial results on May 13, Honda CEO Toshihiro Mibe stated that in the current fiscal year, which began on April 1 and will end on March 31 next year, Honda expects the impact of the Trump Administration’s tariff policy to hammer 650 billion yen (~$4.34 billion) off its operating profits.

Honda's forecast is the latest signal of the difficulty car makers are having navigating tariffs alongside the rise of Chinese EV producers.