Canada’s Auto Industry Retreat: Tariffs and Trade Shifts Reshape the Detroit Footprint
U.S. automakers once dominated Ontario’s plants, but tariffs, policy shifts under Trump, and a pivot toward electric vehicles have weakened their Canadian footprint. Production in Canada has fallen to about 1.2 million vehicles annually, with Detroit-based firms accounting for roughly 38% of assembly jobs in 2024 (and last year just 23% of output), as Asian automakers gain ground. Ottawa is exploring diversification—allowing some Chinese EVs and courting Korean investment—while negotiations around the USMCA/NAFTA trade framework remain unsettled.
