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 Malaysia has launched its first all-electric vehicle in the country, with the e:N1 making its official debut earlier this morning. The B-segment SUV, which was first shown here last December at the Kuala Lumpur

Slower market demand, tariffs and evolving production strategies cited as some of the reasons why Honda is pausing its Canadian EV plans

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

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.

Ontario Premier Ford is vowing to hold auto companies that pull out from Ontario "accountable" after news that Honda announced it is putting a major electric vehicle supply chain planned for the province on hold.

Research from Canada's parliamentary budget watchdog indicates that manufacturers, between 2020 and 2024, unveiled plans to invest roughly $33 billion in EV and related supply-chain production. The Canadian government pledged $22 billion in financing and tax breaks to lure those companies.

Honda said it is delaying its scale-up in the community of Alliston, which includes a battery plant and retooled vehicle assembly line, for about two years as it monitors market conditions.