Auto Makers Brace for Pain as US-Canada Tariffs Threaten Trade

A U.S.-Canada trade clash, including tariffs on steel, aluminum and potentially vehicles, risks higher vehicle prices, plant shutdowns and job losses in both countries. Honda and Toyota are more exposed because a larger share of their U.S. sales come from Canadian-built vehicles, while Ford, GM and Stellantis are less dependent on Canada. While Detroit Three face a pricing squeeze and possible model cuts, the broader threat of 50% auto tariffs and USMCA disputes could erode North American auto competitiveness and hurt Michigan and Ontario economies.