For the first time in three decades, Canada imported more vehicles from Mexico than the US in June. This shift highlights the significant changes occurring as the global auto industry navigates President Donald Trump’s tariffs. According to Statistics Canada, Canadian importers brought in $C1.08 billion ($1.2 billion) of passenger vehicles from Mexico during the month, surpassing the $C950 million from the US. This marks the first instance of the Mexican auto sector outselling the US in monthly data since the early 1990s.
Trump’s imposition of 25 per cent tariffs on foreign vehicles has disrupted the established system that largely permitted the free flow of vehicles and parts across the three North American countries. While the US-Mexico-Canada Agreement applies the duty only to the value of non-US content, this has done little to ease the strained relationship between the US and Canada. Canada retaliated by announcing a tariff on US-assembled vehicles, mirroring the White House’s actions. However, the government also provides tariff relief for automakers that maintain their manufacturing and investment within the country.
This shift in Canada’s imports could indicate how Trump’s tariffs will reshape the American industry. Canada is the largest customer of US-made cars and light trucks. Data from the US Commerce Department shows that the US had an auto trade surplus with Canada in 2024, including the parts sector. American exports of finished vehicles to Canada exceeded exports to Germany, Mexico, and China combined.
