Honda considering moving some auto production out of Canada: Japanese report
A Japanese news outlet is reporting that Honda is considering moving some of its production out of Canada amid the ongoing tariff threats from U.S. President Donald Trump — though automotive experts in Ontario said early Tuesday this may be contingency planning.
Honda is considering switching some car production from Mexico and Canada to the United States, aiming for 90 per cent of cars sold in the country to be made locally in response to new U.S. auto tariffs, the Nikkei newspaper reported on Tuesday.
Such a move would be a major blow to Ontario, which has a large Honda plant in Alliston that was in line to see a massive expansion.
Two sources close to the federal government told Radio-Canada this would be a hard blow for the Canadian auto industry.
Dominic Leblanc, the federal Minister of International Trade and Intergovernmental Affairs, discussed the situation with Ontario Premier Doug Ford yesterday, the sources confirmed.
One government source, who said they have spoken to contacts in Japan, said the $15 billion agreement signed by Honda, Ontario and Canada last year to create a comprehensive electric vehicle supply chain still stands.
Flavio Volpe, president of the Automotive Parts Manufacturers' Association, said there's reason to question the Nikkei report.
"The Honda news appears to be based on a Nikkei report on twoand three-year contingency planning. The Japanese plan for plans," he told CBC News Network.
"I don't see Honda in Ontario being affected at the moment."
CBC News has reached out to Honda for an official comment.
More to come.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CNBC
22 minutes ago
- CNBC
Treasury yields slip as U.S.-China trade talks enter Day 2
Treasury yields slipped Tuesday as U.S. and Chinese officials resumed trade negotiations in London for the second day. The 10-year Treasury yield was down almost 3 basis points to 4.456% at 3.30 a.m. ET. The 2-year yield slipped around one basis point to 3.993%. The 30-year yield was lower by 3 basis points to 4.921%. One basis point equals 0.01%. Yields and prices move inversely in the bond market. U.S.-China trade negotiations in London resumed on Tuesday, building on a recent call between U.S. President Donald Trump and Chinese counterpart Xi Jinping. On Monday, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer had talks with Chinese officials. Both sides have intensified diplomatic efforts following weeks of escalating trade tensions and uncertainty sparked by Trump's broad import tariffs on China and other key trading partners in April. "While we await any concrete news, it's worth remembering that markets have been used to a lot of back-and-forth in recent weeks," Deutsche Bank's analysts said, in reference to how U.S. tariffs slapped on China went all the way up to 145%, before being slashed to 30%, among other instances of policy reversals. "There've been several twists and turns already, and markets are getting fairly used to this uncertainty by now," wrote in a note published Tuesday. Deflation in China is also putting pressure on the Chinese government to negotiate a trade deal with Trump that benefits both countries, said Ed Yardeni, president of Yardeni Research. China's consumer prices fell for a fourth consecutive month in May, with the CPI falling 0.1% from a year earlier, data from the National Bureau of Statistics showed on Monday.


CNBC
22 minutes ago
- CNBC
'Collateral damage': Fund managers lobby Congress over Section 899 to avert foreign investors leaving the U.S.
American fund managers are lobbying Congress over a provision tucked inside President Donald Trump's tax bill that they say could lead to foreign investors "quickly" pulling investments out of the U.S. The "One Big Beautiful Bill Act," which passed through the U.S. House of Representatives in May, aims to penalize foreign-owned firms operating in the U.S. and that are from countries with "unfair foreign taxes" under a provision known as Section 899. It is currently being considered by the Senate. The Investment Company Institute (ICI), which represents fund houses in the U.S., is lobbying Congress for an amendment as it warns the bill in its current form also impacts most foreign investments in U.S. stock markets, according to documents seen by CNBC. "In order to avoid the impact of section 899, portfolio investors are likely to retreat quickly from US equities, leading to capital outflows from the United States," the ICI said in a letter sent to Senator Mike Crapo, the chairman of the Senate Finance Committee, on June 5. "If sustained selling by foreign investors depresses US equity markets, this would harm both US companies and investors." Section 899 aims to introduce retaliatory tax measures against entities from countries that have levies such as the Digital Services Taxes and the OECD's global minimum tax rules. If signed into law, it could impact investors from the European Union, the United Kingdom, Canada, Australia, and Switzerland, among others. The tax would start at 5% and escalate by five percentage points annually to a maximum of 20%, on top of existing taxes, which vary by country and tax treaties. That could dent returns for foreign investors in U.S. equities. In the letter, the ICI also suggests that the U.S. fund management industry, which has collectively invested around $18 trillion in U.S. stock markets, would be "collateral damage" due to the impact of Section 899. "We do believe, however, that the current drafting of proposed section 899 should clarify its scope and avoid discouraging foreign investment in US equity markets through 'investment funds' such as US mutual funds and ETFs and their foreign counterparts (e.g., UCITS funds)," the ICI said. The letter to Senators goes on to say, "section 899 would penalize these funds and their shareholders by taxing passive income from US equity investments. To this end, investment funds would be collateral damage to the intended focus of section 899." Funds typically charge fees as a percentage of assets under management, and a withdrawal by foreign investors, over Section 899 concerns, could lead to lower earnings for the investment management firm. The Senate Finance Committee declined to comment, and Senator Mike Crapo's office did not respond to CNBC's request for comment. Foreign investors own $19 trillion in the U.S. stock markets, $7 trillion in U.S. government bonds, and $5 trillion in U.S. credit, according to data compiled by Apollo Global Management. The ICI said it's largely in support of the U.S. government's attempt to "protect US business interests overseas and to address discriminatory foreign taxes." However, it cautions that the current draft of the bill does the opposite. "Some foreign governments may actually cheer this capital flight from the United States because it benefits their local equity markets, which is not the behavioral incentive that Section 899 seeks to achieve," it said. Yuri Khodjamirian, chief investment officer for Tema ETFs, said investors in Europe who are focused on dividend-distributing U.S. companies would be "thinking quite carefully" about their holdings at this stage. "If suddenly you have to pay tax on that income, why would you hold that?" Khodjamirian questioned. Tema ETFs runs the American Reshoring ETF that is available to both U.S. and foreign investors. Tax experts suggest earnings paid out to foreign investors are more likely to be hit by Section 899 than capital gains and other methods of shareholder distributions. The Tema ETFs investment chief cautioned that the impact on the U.S. equities market would be relatively minimal as U.S. companies, say in the S&P 500, are typically not known for their dividends. "In the US, dividend yields are quite low. There's not a lot of companies paying. And most of the capital gets returned to share buybacks," Khodjamirian told CNBC. "Is that actually going to be that big of an issue then?"
Yahoo
31 minutes ago
- Yahoo
Toyota supplier hit with criticism at shareholder meeting over $33 billion deal
By Maki Shiraki TOKYO (Reuters) -Some investors in Toyota Industries voiced disapproval of a $33 billion buyout offer on Tuesday, adding to criticism that the bid from Japanese parent Toyota Motor was unfair to minority shareholders. The 4.7 trillion yen ($33 billion) offer to take the forklift maker private has already come under fire from international shareholders including London-based Zennor Asset Management and Hong Kong-based Oasis Management. But on Tuesday, domestic shareholders at what is likely to be the company's last annual general meeting before it is taken private, also expressed their concerns about the plan. The world's top-selling automaker plans to take Toyota Industries private in a complex, multi-part transaction that includes an offer price of 16,300 yen a share. The price, some shareholders have said, undervalues the supplier's intrinsic value and strengthens the founding Toyoda family's control over the broader group. "I don't think I am the only one who feels the price is too low," said one shareholder at the meeting. Another said the acquisition would lead to the "domination" of Toyota Industries, one of Toyota's key suppliers, by the automaker. The meeting ran for almost 2 hours, its longest ever, the company said. Toyota Industries' executives also took some two dozen questions from shareholders, the most ever. On Thursday Toyota chairman Akio Toyoda may face similar questions at the automaker's annual general meeting. Toyota has said the acquisition would allow Toyota Industries to deepen collaboration with group companies, without concerns of short-term profit targets, as Toyota itself becomes a broader "mobility company". Under the deal, a new holding company will be set up. Unlisted real estate company Toyota Fudosan will invest 180 billion yen while Toyoda, the founder's grandson, will invest 1 billion yen. Toyota Motor will invest 700 billion yen for non-voting preferred shares. "This was not a decision that neglected minority shareholders, but rather one that was taken with all the factors in mind," Toyota Industries' President Koichi Ito told shareholders. Oasis, which has shares in both Toyota Motor and Toyota Industries, said on Friday it would push for a higher price. Zennor and some others have said the price undervalues the substantial real estate on Toyota Industries's books. Toyota Industries had 1.5 trillion yen of property, plants and equipment on its balance sheet as of the end of March, a number that reflects the cost paid for the assets, minus depreciation, rather than their current market value. Toyota Group companies hold at least 39% of Toyota Industries, according to LSEG data and the deal is widely expected to go through. Shares finished at 16,300 yen on Tuesday. Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data