Honda Warns Tariff Doubling Would Be 'Catastrophic' for Auto Industry

What if tariffs on Canadian steel and autos double on January 1?

Model the impact of tariffs increasing from current rates to 50 percent on Canadian steel and 25 percent on Canadian autos, effective January 1. Simulate effects on component sourcing costs, vehicle assembly economics in Mexico and Canada, and total landed costs for North American auto production. Include secondary effects on supplier profitability and capacity utilization across the North American auto supply base.

What if rules of origin are enforced at 82 percent North American content?

Model the supply chain reconfiguration needed to achieve 82 percent North American content across vehicle production. Simulate sourcing constraints, identify components that cannot currently meet content thresholds, calculate required supplier base expansion in the U.S., Mexico, and Canada, and estimate timing and cost impacts for compliance. Include effects on vehicle pricing and competitiveness.

What if manufacturers shift investment away from North America to other regions?

Simulate a scenario where major automakers reduce capital expenditure in North America by 15-25 percent and redirect facility investments to alternative regions (Southeast Asia, Eastern Europe). Model impacts on regional capacity, lead times for North American sourcing, supplier utilization rates, and availability of key components currently sourced from Mexico and Canada.