Canada’s automotive sector is cruising for a bruising or perhaps, steaming toward an automotive iceberg. Beyond the immediate threat of a 100% tariff on automobile exports, Canada’s automotive manufacturing sector suffers from declining production and a near total dependence on the United States.
Between 2014 and 2023, Canada’s automotive production fell from 2.4 million to 1.5 million units, while imports increased from $57 billion to $82 billion. Of the 1.5 million automobiles Canada produced in 2023, 88 per cent were exported to the US, leaving the industry highly vulnerable to a shift in American policy.
