The world's largest automaker and Honda could have a rather unpleasant decision to make if the Donald Trump administration follows through with its plan to impose a 50% tariff on vehicles imported from Canada. The proposed levy is scheduled to take effect on January 1, 2026, and the problem is much bigger than another line on a spreadsheet.

       

Said tariff would double the existing levy on Canadian automotive imports, which is bad news in and of itself. Worse still, Reuters has revealed that Toyota and Honda account for more than three-quarters of all automobiles produced in Canada. The bad news doesn't end here.