Canadian Auto Exports Took a Major Tumble in April Following U.S. Tariffs
The new U.S. tariffs on foreign-made vehicles, in force since April 2, are having a major impact on Canadian automotive production.
According to Statistics Canada, exports of motor vehicles and parts fell 17.4% in April. This decline was almost entirely attributable to exports of passenger cars and light trucks, which dropped 22.9% in April after rising 21.0% from November 2024 to March 2025.
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“As observed with many products, amid threats by the United States to impose tariffs on Canadian goods, exports of passenger cars and light trucks saw high levels in the three months preceding April,” the federal agency noted. “After tariffs on foreign motor vehicles were imposed by the United States at the beginning of the month, manufacturers in Canada reduced production in April, resulting in a sharp drop in these exports.”
Luckily, auto parts compliant with the Canada-United States-Mexico Agreement (CUSMA) will not face the 25% tariffs that were due to come into effect on May 3.
Overall, total exports dropped 10.8% to $60.4 billion in April, the lowest level since June 2023. This was a third consecutive monthly decline and the strongest percentage decrease in five years. Only exports of metal ores and non-metallic minerals saw a modest increase.
Statistics Canada will publish early next month the results for May, but more drops are expected. Honda, for example, said U.S.-bound CR-V units rolling off the line in Alliston will shift their production south of the border. A spokesperson told us there is no plan to cut total production or workforce in Alliston, however, suggesting the plant will ramp up output of Canadian-sold vehicles.
