by Canada Imports More Cars from Mexico Than from US for the First Time in 30 Years
For the first time in three decades, Canada has imported more cars from Mexico than from the United States. In June, Canadian importers purchased passenger cars from Mexico worth CAD 1.08 billion (USD 784 million), while from the US, it was only CAD 950 million. This may be a consequence of tariffs imposed by the Donald Trump administration.
The 25 percent tariff on imported cars in the US has significantly altered the trade landscape in North America. Mexico, which recently struck a deal with the US, responded by imposing its own tariffs but simultaneously reduced pressure on automakers who continue to invest in Canada.
“What we are seeing now is a forced recognition that we may be entering a new era of long-term tariffs,” said Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association.
Temporary Trend or Lasting Change?
Experts point out that before the tariffs were imposed, Canada imported significantly more cars from the US. The current situation may be related to the use of stockpiles accumulated before the restrictions were introduced. However, if Canada continues to seek alternatives to American cars, manufacturers such as GM, Ford, and Stellantis will be the hardest hit.
The question of whether companies can adapt to the new conditions by moving production or passing costs on to consumers remains open. The ultimate consequences of the tariff policy will only become clear over time, especially given the unpredictability of further actions by the US administration.
