Automotive trade between Canada and the United States recorded a year-on-year drop of 7.5% from January to November 2024, according to Census Bureau data.

This brought these trade flows down to $112.193 billion.

Bilateral imports of automotive products do not pay tariffs under the Mexico-U.S.-Canada Agreement (USMCA).

Automotive trade between Canada and the United States

On the one hand, U.S. automotive exports to Canada amounted to US$59.766 billion, which implies a 5.9% year-on-year drop.

These foreign sales were made up as follows:

• Automobiles: 13,781 million dollars.
• Trucks, buses and special purpose vehicles: 19,438 million dollars.
• Auto parts: 26,546 million dollars.

Conversely, U.S. imports of automotive products from Canada declined 7.5% year-on-year to US$112.193 billion.

This amount was made up as follows:

• Automobiles: 25,588 million dollars.
• Trucks, buses and special purpose vehicles: US$8,958 million.
• Auto parts: 17,881 million dollars.

Industrial Integration

In 2023, the United States imported $62.8 billion in automotive goods from Canada and exported $68.2 billion to Canada.

According to U.S. congressional data, the United States supplied 41% of Canadian vehicle imports by value, and Canada supplied 17% of U.S. vehicle imports by value in 2023.

The Canadian automotive industry includes subsidiaries of U.S.-based automakers. This industry is highly dependent on the U.S. market. In 2023, 94% of Canadian automotive exports, by value, went to the United States.

As a result, some groups in this industry prioritize maintaining integration with the U.S. economy. They also seek to align themselves with U.S. policies and regulations.

The North American Free Trade Agreement (NAFTA), the predecessor to the USMCA, played a crucial role. This treaty helped create a highly integrated North American automotive industry.

Its foundation was the automotive trade integration that already existed between the United States and Canada. This relationship dates back to the Canada-U.S. Automotive Products Agreement, known as the Automotive Pact. This agreement was signed in 1965 and approved by Public Law 89-283, better known as the Automotive Trade Act.