In the 1980s, the Honda Accord transformed the US market. At a time when American roads were dominated by oversized, gas-guzzling sedans, the Accord stood apart, compact, fuel efficient and reliable. By 1989, it had become the best-selling car in the country, overtaking the Ford Taurus and redefining what US drivers expected from a midsize sedan.

One important driver of this success was Honda’s decision to invest directly in the market. In 1982, it became the first Japanese carmaker to build cars in the US, helping it reduce shipping costs and avoid trade barriers that were beginning to mount at the time. But today, that established footprint is facing one of its most serious tests.

While a newly imposed 24 per cent tariff on Japanese imports to the US has been temporarily paused for 90 days, Washington’s trade policy remains volatile. A 10 per cent universal tariff still applies as well as a 25 per cent duty on imported vehicles to the US.