In something of an unexpected consequence, Japanese automakers Toyota (TM) and Honda (HMC) have more to lose than any US automaker from President Trump’s threatened tariffs on Canadian-built vehicles.

In a note to clients, JPMorgan Securities’ head of global auto equity research Jose Asumendi noted that Canadian-built vehicles accounted for nearly a quarter of Honda’s US sales last year, and 17% of Toyota’s.

Higher tariffs would end up hitting two of America’s bestselling SUVs, in addition to the two Japanese automakers’ respective sales. Toyota builds some RAV4 SUVs in Canada, and Honda does the same with some CR-V SUVs, all of which are shipped to US dealers. Canada’s auto industry produces approximately 1.2 million vehicles a year.

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