The announcement coincided with a report in a Japanese newspaper that Honda was considering moving assembly lines from Canada to its southern neighbor, which the company denied.
Canada has imposed a 25 percent tariff on vehicle imports from the United States, in retaliation against President Donald Trump's levies on autos and parts imported from Canada.
The tariff relief, Ottawa said in a statement, was contingent “on automakers continuing to produce vehicles in Canada and on completing planned investments.”
“This is one of the crown jewels of North American manufacturing,“ he said, vowing to fight for jobs in a sector that is already starting to see layoffs and reduced shifts.
The Japanese automaker denied any such plan.
“We can confirm that our Canadian manufacturing facility in Alliston, Ontario, will operate at full capacity for the foreseeable future and no changes are being considered at this time,“ it said in a statement.
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