U.S. President Donald Trump is targeting Ottawa with a proposed 50% tariff on Canadian car imports that would double the current 25% levy and could take effect on January 1, leaving Japanese automakers Toyota and Honda facing the largest potential hit. The two companies account for more than three-quarters of cars made in Canada, and Canadian-built vehicles represented almost a quarter of Honda’s U.S. sales and 17% of Toyota’s last year, according to Barclays analysts, including key SUV exports such as Toyota’s RAV4 and Honda’s CR-V. Canada’s industry builds about 1.2 million cars a year and indirectly supports some 427,000 jobs. Analysts said some Canadian assembly lines could close if the tariffs proceed, while a deal remains possible; the timing is especially difficult because Japanese makers already face low-cost Chinese EV competition in Southeast Asia, Europe and Latin America, leaving the United States—where rivals such as BYD are barred—their biggest and most protected major market. Prior U.S. tariffs cost Toyota about 1.4 trillion yen ($8.8 billion) last financial year, prompting heavier U.S. investment plans, while Honda has tied a possible eighth North American plant to extended USMCA talks after Trump opted on July 1 not to renew the pact and shifted it to annual reviews.