FACING TARIFFS AND DEFINING THE PATH FORWARD FOR CANADA'S AUTOMOTIVE INDUSTRY

OTTAWA, ON, March 21, 2025 /CNW/ - The Canadian Automotive Partnership Council (CAPC) met on March 20, 2025, to discuss current challenges facing the industry. This provided an opportunity for CAPC Co-Chairs to introduce members to the federal government's incoming Minister of Innovation, Science and Industry, the Honourable Anita Anand.

The discussion focused on the impacts of recent and proposed U.S. tariffs on Canadian goods. Members emphasized the highly integrated nature of the North American automotive industry and the existential threat posed by tariffs on the industry in Canada, Mexico, and the U.S.

Members outlined the ways in which tariffs stand to disrupt supply chains and vehicle assembly, jeopardizing an efficient industry that supports over 1 million jobs across Canada and the U.S. and ultimately hurting consumers. Members also emphasized that Canada-U.S. trade is balanced, with the U.S. importing US$53 billion worth of motor vehicles and parts from Canada, while U.S. domestic exports to Canada totaled US$55 billion in 2024. Further, Canada is the largest international market for the United States' automotive industry, with more than 40 percent of the vehicles sold in Canada assembled in the U.S. and approximately half of the value of vehicles produced in Canada coming from U.S. parts.

CAPC continues to call for a swift resolution of the tariffs dispute to protect this critical industry. Free trade between Canada and the U.S. is key to supporting workers and the success of automotive industries in both countries. Industry members look forward to continue working with Ministers on this important matter.

The Honourable Anita Anand, Minister of Innovation, Science and Industry (Government of Canada), noted:

"Our government will always protect and defend Canada's interests, consumers, workers, and businesses. The recent tariffs imposed by the United States on Canadian products are unjustified and will have an impact on both sides of the border. Canada will continue to support our world-class automotive sector, which has been a cornerstone of economic growth and job creation in both our countries."

Background

The Canadian Automotive Partnership Council (CAPC) is an industry-led organization whose mandate is to address the key competitiveness issues facing the Canadian automotive industry. Membership comprises the CEOs of Canada's five automotive assemblers, leaders of Canada's leading parts suppliers, representatives from the battery manufacturing sector, representatives from labour, academia, and aftermarket and dealer associations. The meeting was chaired by the Co-Chairs of CAPC, Rob Wildeboer, the Executive Chairman of Martinrea International Inc., and Jean Marc Leclerc, President and CEO of Honda Canada Inc. 

SOURCE Canadian Automotive Partnership Council (CAPC)

CONTACT INFORMATION: Canadian Automotive Partnership Council, Mr. Neil Forster, Director, Investor Relations and Corporate Development, Martinrea International Inc., [email protected]; Ken Chiu, Corporate Communications, Honda Canada, C: 647-444-0158, E: [email protected]; Government of Canada, Media Relations, Innovation, Science and Economic Development Canada343-291-1777, [email protected]