Canada's Automotive Trade Balance with the U.S. in 2024: A Mixed Picture
In 2024, Canada remained a net importer in the automotive sector, with exports totaling $82.21 billion and imports reaching $142.74 billion. While the U.S. accounted for 95% of Canada's automotive exports and 57% of imports, Canada's trade balance with the U.S. showed a surplus in light vehicles, exporting $43.82 billion and importing $35.49 billion, resulting in an $8.33 billion surplus for light vehicles. However, Canada faced a significant trade deficit with the U.S. in medium and heavy-duty trucks, engines, and automotive parts, contributing to an overall negative automotive trade balance of over $3 billion in 2024.
Toyota Fleet Update – Limited 25MY Availability
Toyota’s 2025 model year (25MY) inventory is nearly sold out, with only two models still available for ordering. The Crown Signia and Tacoma remain open for orders, both with estimated delivery timelines in August 2025.
Tariff Impact on Auto Industry: Cost Increases and Strategic Shifts Ahead
The new tariffs imposed by President Trump are expected to have significant economic impacts on the auto industry, especially for fleet costs, vehicle availability, and strategy decisions through 2026. EY experts predict rising consumer prices, delayed electric vehicle (EV) investments, and supply chain restructuring as major outcomes of the tariff policy. Fleets may face staggered cost increases, with vehicles containing high imported content or luxury models being affected sooner. As inventory depletes, OEMs will need to decide whether to absorb costs or restructure. The tariffs are also expected to contribute to a 1% drag on U.S. GDP in 2025 and could delay EV adoption, with some OEMs reconsidering EV investments. EY advises companies to proactively plan by modeling cost scenarios and aligning supply chain and financial strategies to mitigate the effects of the tariffs.