While trade tensions between Canada and the United States continue to fluctuate, players in the automotive industry must compose with growing instability. A recent threat of customs duties of 35 % on certain Canadian products throws even more shadow on the future of exchanges between the two countries.
Conversely and confidential exemptions
On April 9, Ottawa reacted by applying retaliatory prices on light vehicles produced in the United States and imported in Canada. However, a gesture of appeasement was made towards the five manufacturers who manufacture locally: they have benefited from discount prescriptions, kept confidential, to protect them from these new measures.
Limited effects on supply, for the moment
In light of the sales results of the second quarter of 2025, an analysis of Desrosiers Automotive Consultants (DAC) shows that light vehicles manufactured in the United States represented around 39 % of total sales in Canada, a slight decline compared to 41 % in the first quarter. If we exclude manufacturers who produce in Canada, this share falls to 7 %, against 9 % in the previous quarter.
This shows that there have been few concrete changes in the supply chains so far. Several manufacturers seem to choose to wait and monitor the evolution of commercial negotiations before modifying their logistics. In addition, part of the vehicles sold in the second quarter came from imported inventories before the establishment of counter-tale.
According to Andrew King, director partner at DAC, the real effect of Canadian pricing countermeasures could be more limited than it was feared. “The discount prescriptions partly reduce the impact of surcharge, although their precise content remains unclear. However, some brands and certain models are more vulnerable and will suffer more negative effects. »»
First signs of disturbance
Models such as Polestar 2 and Mazda CX-50 have already temporarily ceased to be sent to Canada, a direct consequence of the new pricing rules. It is likely that other models will follow the same path if the commercial conflict continues, resulting in price increases and localized shortages.
To find out more
To find out more about this data, consult the reports of Desrosiers Automotive Consultants Inc. or contact Daniel Azarov at the following address: daniel@desrosiers.ca.
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