One year after President Donald Trump imposed tariffs on the Canadian auto industry, industry leaders express a desire for a trade agreement to restore stability in Canada-U.S. trade relations. The President and CEO of the Canadian Vehicle Manufacturers Association (CVMA) had hoped for a temporary tariff period leading to a new trade deal, but now expresses concern over the lack of a resolution in sight.
Brian Kingston, from CVMA, highlighted the substantial $5 billion total tariff exposure for Canadian manufacturers until 2025, emphasizing the challenges faced by automotive plants operating under such tariffs. Kingston emphasized that diversification alone cannot sustain the Canadian auto industry without access to the U.S. market.
Motor vehicle exports experienced a significant decline in January as a result of the 25% tariffs imposed on Canadian-assembled passenger vehicles and non-compliant parts under the Trump administration rules. Statistics Canada reported a 21.2% drop in motor vehicle and parts exports to $5.4 billion in January 2026, the lowest level since September 2021. Exports of passenger cars and light trucks fell by 32.5%, attributed to production stoppages related to model changes.
Lana Payne, the national president of Unifor, representing workers at various assembly plants, criticized the impact of tariffs on auto and manufacturing workers, leading to job losses and disruptions in both countries. Payne highlighted the challenges faced by workers in the industry due to the ongoing trade war.
Flavio Volpe, president of the Automotive Parts Manufacturers Association (APMA), commended the collaboration between industry and labor during the crisis. He noted varying impacts of tariffs on parts manufacturers, with companies selling primarily to the U.S. faring better than those focused on the Canadian market. Volpe emphasized the pressure on suppliers to reduce costs to remain competitive amidst the tariff situation.
Despite challenges, Windsor workers have shown resilience during manufacturing crises, with Volpe acknowledging their ability to cope with uncertainties. However, Windsor workers also face additional pressures, including media attention and politicization of their challenges.
Overall, industry leaders and workers continue to navigate the complexities of the trade environment, seeking solutions to mitigate the impact of tariffs on the Canadian auto industry.