US tariff could slash auto sales by millions

The Honda CR-Vs and Civics that are ubiquitous on central Ohio roads and in supermarket parking lots could become a lot less popular if proposed tariffs on imported cars are imposed.

Honda builds both models in Canada. Vehicles made there and brought into the U.S. — most Canadianmade cars end up at dealerships here — would be slapped with a 25 percent tax. On a $ 30,000 vehicle, that would represent a price hike of more than $7,000.

That is a nonstarter for many U.S. consumers, possibly slashing vehicle sales by millions, according to analysts.

The proposed tariff comes as the U.S., Canada and Mexico renegotiate the North American Free Trade Agreement, a process that has dragged on for months. The auto tariff is part of an escalation of shots by President Donald Trump, including tariffs on imports of aluminum and steel.

Honda, whose American headquarters is in Marysville, also builds vehicles in Mexico such as the HR-V.