The latest figures paint a grim picture. In 2024, Canadians bought
1,918,861 new motor vehicles. Source:
https://www150.statcan.gc.ca/n1/daily-quotidien/250314/dq250314d-eng.htm. For 2024, production was estimated to be closer to
1.3 million vehicles. Source:
https://trilliummfg.ca/data-bulletin/canadian-automotive-trade-production-and-sales-2014-2023/
Canada has a big deficit in the production of vehicles, and a big reason for the drop in production is the fact that Stellantis Brampton and Ford Oakville have been idled for 2 years for "retooling." When did it take 2 years to retool an auto plant? Ford was supposed to be retooling for EVs but scrapped that plan despite getting billions from Ottawa and Queen's Park. Ford announced instead it would be producing the F-250 in Oakville, but that was before Trump was elected, so those plans are doubtful at this point. Ford did not produce any vehicles in Canada last year despite selling 279,221 vehicles.
Most vehicles produced in Canada are produced by Toyota and Honda, and most get shipped to the United States. We won't see any expansion of these plants, and we could lose them if they can no longer remain viable as US production for the models currently produced in Canada gets ramped up. I read recently that Nissan made a deal to assemble Hondas at one of its underutilized plants in the United States. Honda, looking to increase US domestic production, is bad news for Honda Canada IMO.
Last week, the US Congress passed Trump's "big, beautiful bill," which included a provision making interest on new car loans tax-deductible but only for American-made cars. This tax break is worth about $2,000 to American car buyers. It is a massive non-tariff barrier for Canadian cars. When I became aware of this provision in the bill in April, I raised the red flag with Ottawa and Queen's Park, sending numerous emails over the month's but I see no evidence that Ottawa protested this non-tariff barrier that violates the USMCA. I didn't even receive a simple acknowledgment of my emails, even though dozens in Ottawa and Queen's Park were copied.
Trump is stealing our auto industry out from underneath us like stealing candy from a baby, and there has been zero meaningful pushback from our "leaders". Trump told PM Carney to his face when he was sitting next to him in the Oval Office, "I don't want Canadian cars". Carney just sat silently with a stupid grin on his face. Carney should have said,
"If I may, Mr. President, if you don't want to buy our cars, we are not going to buy your cars, and did you know that the United States has a $7.1 billion surplus with Canada on cars?".
That's right! The United States has a $7.1 billion
SURPLUS with Canada in autos and auto parts! Meanwhile, the US has a $137 billion
DEFICIT with Mexico on trade in autos. You never hear Trump griping, "I don't want any Mexican cars." Source:
https://www.americaeconomia.com/en/...breaks-record-and-exceeds-us-137-billion-2024
How many of you knew that the US had a $7.1 billion surplus in autos with Canada, vs. a $137 billion deficit with Mexico? Have you ever heard PM Carney mention these facts? What about Premier Ford? In this trade war with Canada, we have had all the facts on our side, but you would never know it because neither PM Carney (and Trudeau before him) nor Doug Ford has set the record straight with Trump.
