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.

Honda has assured Canada that no jobs will be lost and it is committed to major electric vehicle investments in the country, Industry Minister Melanie Joly said on Wednesday, in the wake of the Japanese carmaker announcing it would put on hold a plan to build an EV supply chain in Canada.

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