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Prime ministers

Canadian Auto Sector Meets with Prime Minister to Address Trade War Concerns

Strategic Insights

— 1 min read

Prime Minister Mark Carney has met with top executives from the Canadian automotive sector to discuss the trade war with the United States and ways to protect Canada's supply chains. The meeting comes as the U.S. has imposed 25% tariffs on vehicles manufactured in Canada, with a carve-out for components built in the U.S. through the highly integrated vehicle supply chain. The Canadian auto sector is also concerned about Canada's zero-emission vehicle mandate, which is set to kick in next year, and has called on the government to repeal it.

Key Takeaways:

  • The Canadian auto sector is seeking to protect its supply chains from the ongoing trade war with the United States, which has imposed 25% tariffs on Canadian-manufactured vehicles.
  • The auto sector has called on the government to repeal Canada's zero-emission vehicle mandate, citing the higher cost of electric vehicles and decreased sales due to the expiration of federal rebates.
  • Zero-emissions vehicles made up only 8.11% of all new vehicle sales in Canada between January and March, a drop from the 16.5% recorded in the fourth quarter of 2024.
  • The monthly share of new vehicle sales going to electric vehicles has fluctuated between 10.65% and 18.29% in 2024, but dropped to 7.53% in April 2025.
  • The Canadian automotive sector is being led by executives from Ford Canada, Stellantis Canada, and GM Canada, as well as Brian Kingston of the Canadian Vehicle Manufacturers' Association.
  • U.S. President Donald Trump has repeatedly stated that the U.S. does not need Canadian cars and wants to see automotive companies move all production to the U.S.

Statistics:

  • 25%: the tariff imposed by the U.S. on Canadian-manufactured vehicles
  • 72.5%: the percentage of new vehicle sales in Canada that have not been electric vehicles (between January and March)
  • 16.5%: the percentage of new vehicle sales in Canada that were zero-emissions vehicles in the fourth quarter of 2024
  • 8.11%: the percentage of new vehicle sales in Canada that were zero-emissions vehicles between January and March
  • 7.53%: the percentage of new vehicle sales in Canada that were electric vehicles in April 2025
  • 18.29%: the highest percentage of new vehicle sales in Canada that were electric vehicles in December 2024

Sources:

  • The Canadian Press
  • Statistics Canada

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