Macro Playlist

The White House wants to bring auto production back to the United States. Canada’s natural response is to figure out how to preserve access to the U.S. market. But what if we asked a different question: why shouldn’t Canada build more of the vehicles Canadians are already buying?

The paradox is striking. Canadians bought nearly 2 million new vehicles in 2025. Meanwhile, Canadian plants produced nearly 1.3 million vehicles in 2024, but only 9.4% of that production remained in Canada. At the same time, according to the Canadian government, more than 40% of the vehicles sold in Canada are assembled in the United States. Canada has significant production capacity, but it is primarily geared toward foreign markets, while a large share of our own market is supplied by U.S. plants.

Canada cannot replace the massive U.S. market. But it can use its own market as leverage. Preferential access to Canadian consumers should be tied to production and investment in Canada. The auto strategy of the future could be simple: invite new European and Asian partners to build more of the vehicles we already drive right here in Canada. Washington wants “America First.” Nothing is stopping Ottawa from responding: Canada first, but not Canada alone.

Sources: Statistics Canada, U.S. International Trade Commission