Auto sector at odds over approach to tariff negotiations as Ottawa pursues deal with U.S.

Résumé détaillé

Division lies in different commercial realities among the five carmakers operating in Canada, insiders and lobbyists say

Canada’s auto manufacturing sector is divided on the best path forward as Ottawa once again pursues an agreement with Washington in a bid to stabilize the industry.

The Detroit Three automakers are pushing for a tariff deal sooner rather than later that can staunch the bleeding and hopefully be improved over time. Honda Motor Co. HNDAF and Toyota Motor Co. TM-N, by contrast, want Ottawa to avoid locking in to an uncompetitive tariff level, and support the idea of a tradeable import credit system that would reward companies that build more cars in Canada than they sell.

Industry insiders and lobbyists say the division lies in different commercial realities among the five carmakers operating in Canada: the models they make, how much U.S. content is in the vehicles, and how they supply the Canadian market.

This makes things tricky for Canada-U.S. Trade Minister Dominic LeBlanc and chief trade negotiator Janice Charette as they try to establish red lines for the sector in talks with Washington that broke down over the summer but have regained momentum in recent weeks.

The stakes for the Canadian auto industry were evident this week. Ford Motor Co.’s reopening of its assembly plant in Oakville, Ont., and Honda’s announcement that it’s restarting engine production in Canada point to resilience in the sector. Meanwhile, Stellantis NV’s STLA-N sale of its idled plant in Brampton, Ont., to armoured-vehicle maker Roshel Inc. was a warning shot about what faces the industry if Ottawa can’t land a deal to restore competitive access to the U.S. market.

The Trump administration’s 25-per-cent tariff on Canadian-made autos – minus a carve-out for U.S. parts in the vehicles – has put severe pressure on an industry that typically exports nearly 90 per cent of production to the United States. The value of Canadian passenger car and light truck exports to the U.S. tumbled nearly 12 per cent from 2024 to 2025, and exports are tracking even lower in 2026.

In August, Washington offered to…

Ottaw…

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