Honda Motor has delayed its planned $15bn electric vehicle (EV) battery and assembly facility in Ontario by approximately two years, citing slowing EV demand and tariff impacts, as reported by Reuters .

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.

The development won’t affect jobs at Honda’s Alliston, Ont., plant, but it comes at a turbulent for the province’s automotive industry

During the announcement of its 2024-2025 fiscal year financial results on May 13, Honda CEO Toshihiro Mibe stated that in the current fiscal year, which began on April 1 and will end on March 31 next year, Honda expects the impact of the Trump Administration’s tariff policy to hammer 650 billion yen (~$4.34 billion) off its operating profits.

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.

Among the major government-backed EV-making investments announced in the past few years, Honda’s stands to be both the biggest and the best value from a Canadian perspective

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Honda announced the postponement on Tuesday after forecasting a 59 per cent profit decline in the current fiscal year.