For the first time in more than 30 years, Canada imported more vehicles from Mexico than from the United States in June, reflecting significant changes in the North American automotive industry following the tariffs imposed by President Donald Trump.
According to Statistics Canada, Canadian imports from Mexico reached a value of 1.08 billion Canadian dollars (784 million US dollars), surpassing the 950 million Canadian dollars from the United States. This phenomenon has not been seen since the early 1990s.
The 25% tariffs imposed by the United States on foreign vehicles have disrupted the traditional free flow of cars and auto parts between Canada, Mexico, and the United States, affecting market dynamics and supply chains in North America.
Under the USMCA trade agreement, these tariffs only apply to non-US content in vehicles, but this exception has not been enough to improve the tense trade relations between the US and Canada. In response, Canada imposed similar tariffs on vehicles assembled in the United States.
The United States maintains an automotive trade surplus with Canada, with the latter being one of its largest customers, with exports exceeding those sent to Germany, Mexico, and China combined.
Companies such as General Motors and Ford continue to supply the Canadian market primarily with U.S.-made vehicles.
Brian Kingston, executive director of the Canadian Automobile Manufacturers Association, noted that the industry is beginning to accept the reality of living with long-term tariffs, although he hopes for a better trade agreement in the future.
Source: elimparcial
