Canadian Prime Minister Mark Carney condemned U.S. President Donald Trump’s tariffs on imported vehicles, arguing that the deeply integrated North American supply chain plays a crucial role in sustaining the competitiveness of American car manufacturers.
Addressing business leaders on Wednesday, Carney stressed that the United States-Mexico-Canada Agreement (USMCA) is crucial for sustaining U.S. competitiveness in the automotive industry, while acknowledging that some stakeholders remain unconvinced.
During Carney’s White House visit earlier this week, President Trump described the auto industry as a point of rivalry between the U.S. and Canada, emphasizing the strength of the American domestic market.
Industry analysts report that the tariffs have disrupted Canada’s automotive sector and have had an impact on U.S. firms as well. General Motors, for example, temporarily shut down one of its Canadian plants and warned of potential production cuts at another, while Stellantis also scaled back operations by reducing shifts at its Windsor, Ontario, facility after the implementation of the tariffs.
Meanwhile, U.S. Commerce Secretary Howard Lutnick reaffirmed that the U.S. has no interest in vehicles manufactured in Canada.
According to Canadian officials, the deeply integrated supply chain between the two countries makes it difficult to separate U.S. and Canadian auto production. Cars built in Canada often contain at least 50% U.S.-made components. In 2024, the United States exported $29.5 billion worth of auto parts to Canada and imported $19.5 billion in return. Canada also emerged as the top foreign buyer of American passenger vehicles and light trucks, spending $23.2 billion—more than any other international market.
Carney stated that Trump’s ‘protectionist policies’ have fundamentally changed the relationship between the U.S. and Canada and affirmed the critical role of the USMCA in supporting North American competitiveness.
KNOWLEDGE | Family Practicality Leads South African Car Buying Trends
