Honda Warns January Tariff Increase on Canadian Steel and Autos Would Be 'Catastrophic' for US Industry

A pending increase in U.S. tariffs on steel and auto imports from Canada starting January 1 would be "catastrophic" for the industry, Honda Motor's head of public affairs said Tuesday at the Reuters Automotive USA conference in Detroit. Jennifer Thomas, senior vice president of corporate affairs for American Honda Motor Co., said the automaker is closely watching talks between the U.S., Mexico and Canada and hopes the countries extend their longstanding trade deal. "We need that trilateral agreement to stay in place in order for the US industry to be competitive," Thomas said, adding she is "cautiously optimistic" the tariff doubling will be avoided. The U.S. and Canada are negotiating relief from duties imposed under Section 232 of U.S. trade law, including a tariff of up to 50% on Canadian steel and 25% on autos. Washington has also demanded that all North American-built vehicles contain 50% U.S.-specific content. Honda said in August it may not build an eighth North American assembly plant unless the trade deal is extended.