Mexico becomes largest car supplier for Canada

Mexico strengthens its automotive leadership by becoming the main exporter of vehicles to Canada, reflecting its ability to adapt and international competitiveness.

For the first time in more than three decades, Mexico positioned itself as the main supplier of vehicles to Canada, surpassing the United States, its traditional trading partner. This transformation in the dynamics of North American automobiles reinforces Mexico’s role as a manufacturing power in the region.

According to Statistics Canada, Canadian vehicle imports from Mexico reached a value of 1,080 million Canadian dollars (equivalent to 784 million US dollars) during June 2025. By contrast, vehicles from the United States totaled 950 million Canadian dollars, marking an unprecedented change since the early 1990s.

Tariff effect: a new configuration of trilateral trade

This phenomenon responds, in large part, to the effects of the 25% automotive tariffs imposed by the Donald Trump administration on vehicles with non-US content. Although the USMCA establishes certain protections, the measure has impacted supply chains and strained trade relations.

In response, Canada also imposed tariffs on U.S.-assembled vehicles, which accelerated the realignment of automotive suppliers. This new reality has benefited Mexico, which maintains a solid manufacturing base, export capacity, and compliance with the rules of origin of the USMCA.

Mexico, an engine of resilience and growth

Despite regional challenges, companies such as General Motors and Ford continue to bet on Mexico as a strategic production platform. Quality, efficiency and geographical location have allowed the Mexican automotive industry to maintain its competitiveness and supply demanding markets such as Canada.

The executive director of the Canadian Association of Vehicle Manufacturers, Brian Kingston, said that the sector is already beginning to adapt to an environment of permanent tariffs, although he is confident that better trade conditions will be achieved in the future.

This historic change demonstrates that Mexico has not only resisted tariff pressures, but has also been able to turn challenges into opportunities for expansion, consolidating its leadership in the North American automotive market.

While some traditional players face temporary closures – such as Ford’s plant in Ontario – the Mexican industry is strengthening, adapting and continuing to grow, boosting exports and consolidating its international presence.