Honda Motor Co., Ltd. announced on Tuesday the postponement of its plan to establish a comprehensive electric vehicle value chain in Canada.

The company stated that the original plan announced in April last year will be postponed by approximately two years due to the current slowdown in electric vehicle demand. Honda had previously intended to strengthen its electric vehicle supply system and increase demand in North America, setting a goal to make electric vehicles represent 100% of vehicle sales by 2040. The specific timing of the resumption of the project will be subsequently announced.

This announcement follows the alleged plan of the company to move production from Canada to the United States due to US President Donald Trump's 25% tariff on all cars that are not American-made. Canadian officials later denied reports about such a plan.