Trump's Canada Tariffs Could Hammer ... Japan?

Tariffs aimed at Canada could end up slamming Japan. That's the upshot of a Reuters piece on President Trump's proposed 50% duty on cars coming in from north of the border—one that would most acutely hit Toyota and Honda, which build more than three-quarters of Canada's vehicles. Analysts say if the plan to double current levies on Canadian auto imports kicks in on Jan. 1, the companies could be forced to idle or close some Canadian assembly lines, threatening a chunk of the roughly 427,000 jobs tied to the country's auto sector.

The timing is rough: Japanese automakers are already under pressure from cheaper Chinese EVs abroad, and the US is their key market—and one where Chinese brands like BYD don't compete. Canadian plants supply nearly a quarter of Honda's US sales and 17% of Toyota's, Barclays estimates. Redirecting those vehicles elsewhere and replacing US supply would be complicated and costly. "If you really wanted to destroy the Canadian auto industry, you could with these tariffs," says Julie Boote, a London-based auto analyst. For the breakdown of the stakes, read the full report at Reuters.