Automakers Face 50% US Tariffs on Canada, Hope for Deal Before They Take Effect

GeopoliticsMacro Impact 4
โดย ロイター·USCA·Read original
Summary · why it matters

Global automakers face a doubled problem after President Trump declared that from January 1 next year, the US will impose 50% tariffs on Canadian-made vehicles, auto parts, and trucks. One industry executive said, "We must not let Canada be treated like China in January." According to Barclays, Canadian-made vehicles account for only about 6% of US sales in 2025, but if tariffs double, Ford Motor, General Motors, Stellantis, Toyota, and Honda will face significant additional costs on their main models. Moreover, higher tariffs on parts would hit the entire US automotive supply chain. Some industry sources interviewed by Reuters suggested that since the tariffs are months away, there is still room for both sides to reach an agreement. Toyota and Honda are expected to be the most affected, as according to the Canadian Automobile Manufacturers Association, they account for over 75% of the 1.2 million vehicles produced in Canada in 2025, most of which are exported to the US.

Impact on stocks 5

Electrification & Mobility▼ · 5 stocks
Toyota Motor Corp.
7203
▼ NegativeTariffrelevance

Toyota is among the most affected, producing over 75% of Canadian vehicles exported to the US.

Honda Motor Co., Ltd.
7267
▼ NegativeTariffrelevance

Honda is among the most affected, producing over 75% of Canadian vehicles exported to the US.

Ford Motor Company
F
▼ NegativeTariffrelevance

50% US tariffs on Canadian-made vehicles and parts will add significant costs to Ford's main models.

General Motors Company
GM
▼ NegativeTariffrelevance

50% US tariffs on Canadian-made vehicles and parts will add significant costs to GM's main models.

Stellantis NV
STLA
▼ NegativeTariffrelevance

50% US tariffs on Canadian-made vehicles and parts will add significant costs to Stellantis's main models.

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