Business · Trade · 7 hrs ago
U.S.-made vehicles lose ground in Canada as tariffs reshape supply
U.S.-made vehicles lost 20% of their share of Canada's market in the first half of 2026 compared with a year earlier.
They still accounted for the largest share, at 28.4%, down from 35.4% a year earlier.
Canada imposed 25% tariffs on U.S. vehicle content in response to U.S. tariffs of the same amount.
Some automakers, including Tesla, Volvo, Subaru and Mazda, have stopped shipping certain U.S.-made models to Canada or moved production elsewhere.
With vehicles from Mexico, Japan and South Korea entering Canada without tariffs, their market shares grew.
The shift matters because tariffs are changing where automakers source vehicles, while Canadian-made vehicles also lost market share.
The figures point to a reshaped supply mix, but no further policy changes or next steps are specified.
U.S.-made vehicles’ share of the Canadian market fell to 28.4 per cent in the first half of 2026, down from 35.4 per cent a year earlier.
The decline came as tariffs prompted automakers to change supply routes or stop exporting some U.S.-made models to Canada.
Mexico, Japan and South Korea increased their shares of Canadian vehicle sales in the same period.
U.S.-made vehicles still had the largest share of the Canadian market.
JD Power data showed Canadian-made vehicles’ share also declined, to 11.5 per cent.
- Who
- Automakers selling vehicles in Canada, including Volvo, Tesla, Subaru and Mazda.
- What
- The market share of U.S.-made vehicles in Canada fell to 28.4 per cent in the first half of 2026.
- When
- The first half of 2026, compared with the first half of 2025.
- Where
- Canada.
- Why
- Retaliatory tariffs led automakers to shift supply lines or stop exporting some U.S.-made models to Canada.
This story does not have two clearly opposing sides.
Brian Kingston said U.S. vehicles held 43 per cent of Canada’s market as recently as this year.
U.S.-made vehicles held 35.4 per cent of the Canadian market.
U.S.-made vehicles’ share fell to 28.4 per cent, while Mexican-made vehicles’ share rose to 22.2 per cent.
- U.S.-made vehicles
- 28.4 per cent of Canadian sales in the first half of 2026
- Previous U.S.-made share
- 35.4 per cent in the first half of 2025
- Mexican-made vehicles
- 22.2 per cent of sales in the first half of 2026
- Japanese-made vehicles
- 16.6 per cent of sales in the first half of 2026
- Canadian-made vehicles
- 11.5 per cent of sales in the first half of 2026
What people are saying
Our data shows the largest change for vehicles coming out of the U.S.
U.S. trade policy is damaging the U.S. automotive industry, and virtually every metric supports that
It is a perverse outcome of this whole trade war, right?
It is likely more based on sourcing changes to avoid tariffs than consumer demand