Canadian autoworkers face a growing crisis as Honda announces a two-year delay to its $15 billion electric vehicle (EV) supply chain project in Ontario. The decision, influenced by escalating U.S. protectionist policies under former President Donald Trump, marks a serious setback for Canada’s automotive industry.
Originally unveiled in April 2024, the ambitious plan included four new facilities in Alliston, Ontario — featuring an EV assembly plant, battery production, and a projected output of 240,000 EVs annually. Now, that vision is on hold, with Honda citing policy uncertainties and cross-border trade disruptions as key concerns.
Unifor, Canada’s largest private-sector union, issued a sharp rebuke following the announcement. “Trump’s rollback of EV policies and his punishing tariffs on Canadian-made vehicles are killing jobs week after week and threatening the future of our industry,” said Unifor National President Lana Payne. “This isn’t about fair trade — it’s economic sabotage.”
Though Unifor does not represent workers at the Honda Alliston plant, the union represents members throughout its supply chain and views the delay as part of a broader threat. The union has also raised alarms over recent developments at General Motors, where production of the BrightDrop electric van was paused in Ingersoll, and shift reductions are planned at Oshawa Assembly Plant this fall — all linked to the Trump administration’s 25% tariff imposed on Canadian-assembled vehicles on April 3.
While Canada has responded with retaliatory tariffs, the U.S. has spared Canadian auto parts, strategically pressuring automakers to relocate final assembly operations to the United States while shielding American production lines.
“These policies are designed to intimidate companies into abandoning Canada,” Payne said. “But Canada remains a critical vehicle market. Automakers that want access to our consumers must also invest in our communities.”
Unifor is calling on the federal government to take bold action — including stronger investment commitments, job protections, and a strategic plan to safeguard the EV transition amid intensifying global and cross-border competition. The union is also demanding that tariff-free access be revoked for automakers that cancel or divert pledged investments to the U.S.
As the auto industry navigates a shifting geopolitical landscape, Canada’s manufacturing sector faces mounting pressure to assert its role in the global EV future — or risk being left behind.
