Canadian auto imports shift as tariffs reshape sourcing

Canada’s auto industry is adjusting to ongoing trade tensions as counter-tariffs on U.S.-built vehicles continue to reshape sourcing strategies, according to DesRosiers Automotive Consultants.

Import data shows a dramatic shift since the tariffs took effect April 9. In the early months of 2025, automakers rushed U.S. vehicles into Canada to build inventory ahead of the expected duties, with March imports more than doubling January levels. Once tariffs were imposed, imports from the U.S. plummeted and have been declining ever since.

Manufacturers have turned to other sources, with Mexican imports showing the most significant growth, up 98.7 per cent in June compared to January. Despite these changes, consumer prices have remained relatively stable. CPI data shows new vehicle prices rose just 3.9 per cent in August versus a year earlier.

“The path ahead in terms of auto tariffs remains unclear,” said Andrew King, managing partner at DesRosiers. “However, it seems unlikely that the market can wait much longer for a resolution and that logistics and prices will continue to shift to align with the current reality.”

DesRosiers’ analysis note that inventory built up before tariffs has largely been depleted, leaving questions about how U.S. imports will trend in the coming months.