Canadian exports of vehicles and auto parts were hit with more than $524.5 million in tariffs in July, according to a report from the Anderson Economic Group. This sudden increase follows the implementation of new tariff policies in the United States.
In July, a total of $1.5 billion in tariffs were imposed on assembled vehicles from Canada and Mexico. Canadian cars alone accounted for $429 million of that total, representing about 26% of their taxable export value. Canadian auto parts were not spared, with nearly $100 million in tariffs, or 36% of their taxable value.
A Turning Point for the North American Industry According to the analysis, nearly $1.93 billion in tariffs hit manufacturers and their suppliers for vehicles and parts from Canada and Mexico in July.
The End of Exemptions Under USMCA Until recently, Canadian exports largely benefited from exemptions under the United States–Mexico–Canada Agreement (USMCA). However, in July, the share of exempted vehicles dropped from 99% to just 36%, signaling a sharp shift in U.S. trade policy. Experts are calling this a "turning point" for North American manufacturers, who will now have to contend with lasting cost increases throughout the supply chain.