Industry briefing: a January tariff threat for Canadian built cars and an 80% charging limit for the VW ID.4

Honda warns against doubling US tariffs on Canadian cars

US tariffs on Canadian steel and auto imports are set to double on January 1, unless the US and Canada reach a deal first, Reuters and CBT News report. Today Section 232 tariffs reach up to 50% on Canadian steel and 25% on autos. Speaking at the Reuters Automotive USA conference in Detroit on October 27, Jennifer Thomas, senior vice president of corporate affairs at American Honda, said a doubling “really would be catastrophic just for the entire industry”. She said she is cautiously optimistic it will be avoided.

Toyota and Honda build most of the vehicles made in Canada, so they are the most exposed. Honda says more than 60% of the vehicles it sells in the US are built in the US. US Trade Representative Jamieson Greer said that vehicles assembled in Mexico and Canada would likely still face some tariffs even with a new deal. Talks on the wider US, Mexico and Canada trade pact are also going on.

What it means for owners: nothing changes on prices today. If you are shopping for a new car that is assembled in Canada, the window sticker shows where it was built, and prices could move after January 1 if no deal is reached. Before you buy, compare the full cost of ownership, not just the sticker price; see the true cost of owning a car.

VW ID.4: charging limited to 80% over a battery fire risk

Volkswagen is recalling 22,524 ID.4 SUVs, model years 2023 to 2026, in the US over a risk of battery fire (NHTSA campaign 26V630, VW recall 93EX), Electrek reports. In its report to NHTSA, VW says certain charging profiles combined with a charge level above 80% may trigger thermal propagation in the battery. The root cause is not yet known and there is no repair yet.

VW emailed owners that it intends to apply a temporary vehicle setting that limits charging to 80%, unless they opted out by October 21. Owner letters are expected November 27, 2026, with more letters once a remedy is ready. On October 23 VW Group also told NHTSA about a related recall of 9,048 Audi Q4 e-tron models; read our story on the Audi recall. Outside the US, VW has recalled about 72,668 ID. Buzz, ID.3, ID.4, ID.7 and Cupra Born models for similar battery checks.

What it means for owners: if you drive an ID.4, keep charging to 80% or less, even if you opted out of the automatic limit, and plan longer trips around the shorter range. Check your VIN at NHTSA.gov/recalls or call VW customer service at 1-800-893-5298. Our guide on EV charging cost explains what a charge costs at home and on the road.