The Canadian auto industry is bracing for impact following U.S. President Donald Trump’s Wednesday announcement, of a 25 per cent tariff on imported vehicles. A move expected to drive up consumer prices and disrupt manufacturing operations across North America.

Among the automakers affected across the region, Honda is assessing how the new levies will impact its Canadian operations.

Ken Chiu, a spokesperson for Honda Canada, acknowledged the situation while emphasizing the company’s long-term commitment to its business operations.

“We are working to understand the full impact of the imposed U.S. tariffs on our business. We remain focused on protecting our more than 4,000 manufacturing associates and our long-standing business operations in Canada. Our path is for the long-term and with our North American powertrain production flexibility, we are confident we can pivot effectively.” Chiu said in a statement.

For Honda, which has manufacturing and supply chain operations in Canada, the company produces vehicles at its Alliston, Ont. plant and relies on cross-border trade for vehicle parts and materials.

The new levies on cars and light trucks are set to kick in on April 3. This is part of a broader trade strategy by the Trump administration, which has already imposed duties on steel, aluminum, and various goods from Canada, Mexico, and China.

Although Honda has not addressed any countermeasures, it says its capable of safeguarding manufacturing associates throughout North America.