There are two phenomena to understand when looking at the auto sector not only in Canada but also worldwide. First and foremost, it's really about the impacts of tariffs. In Canada, we're in a trade war. We have 25% tariffs against our auto sector, but because of the rules of origin, basically, the effective tariff is around 12.5%. That's something we have to reckon with. The other thing is that there have been a lot of investments made across the world in electrification. Capital is going towards electrification. There's an entire industrial revolution happening in the auto sector. For a long time, North America was leading these new technologies. We need to make sure that this continues to be the case.
That's why our auto strategy has two objectives. The first is to support auto production in Canada. The second is to make sure we're able to double down on electrification and adopt these new technologies in order to make sure that the plant in your riding, in Oakville, which is undergoing an important retooling, is developing the best cars in the world for the world.
We're able to see that with Honda and Toyota, which recently increased their production. They're now at more than 75% of all auto production in Canada. Premier Ford and I were in Windsor, in Ms. Borrelli's riding, opening a new NextStar battery plant facility. I was in Germany two weeks ago meeting with Volkswagen. They are opening an important plant in St. Thomas, which will create thousands of jobs.
We need to make sure we do both. We need to defend our auto workers and advocate for them in Washington. At the same time, we need to be clear-eyed and to be adopting new technologies that we're seeing across the world.