As Tariff War Drags On, U.S.-Built Vehicles Lose Market Share in Canada
In case you haven't heard, imports of vehicles and auto parts into Canada have fallen to their lowest level in over two years, a direct result of the reciprocal tariffs announced by Ottawa in response to those imposed by Washington in early April.
New data confirms that U.S.-made vehicles in particular are losing market share across the country.
- Also: Tariffs’ Impact Yet to Be Felt as New Vehicle Sales Rise 4.3 Percent in First Half
- Also: Tesla Raises Prices 13-22 Percent in Canada Due to Tariffs
According to DesRosiers Automotive Consultants, these accounted for 39 percent of new vehicle sales in Canada in the second quarter of 2025, compared with 41 percent in the previous quarter.
Among the most high-profile cases, Mazda stopped importing its CX-50 on May 12, while Tesla jacked up its prices and then focused on selling off its pre-tariff inventory. Model Y imports have resumed, but the $20,000 price cut suggests that units now come from Germany.
As Automotive News reported in early July, Nissan has suspended production of three U.S.-made vehicles for the Canadian market: the Pathfinder and Murano SUVs, as well as the Frontier pickup. The suspension was said to have begun on May 27 after Nissan had replenished its Canadian dealers' inventories. It's impossible to say when imports will resume.
Given the magnitude of the tariffs (up to 25 percent), automakers can hardly absorb them all or pass the bill on to their customers, so expect more American-built models to stop crossing our border in the near future.
What's more, as Canadian dealers run out of pre-tariff stock, the proportion of new American vehicles sold in Canada is likely to continue to fall over the coming months.
Manufacturers operating vehicle assembly plants in Canada—Ford, General Motors, Stellantis, Honda and Toyota—benefit from a remission on import duties. The incentive was introduced by the federal government to dissuade them from exporting part of their production to the U.S.
