The automotive sector is a critical pillar of the Canadian economy, contributing approximately 4% - or about $94 billion – to national GDP in 2024. Canada's auto industry is deeply integrated with the U.S. market, with approximately 93% of automotive exports destined for the United States. This high degree of supply chain interdependence underscores the sector’s reliance on stable and predictable trade relations.
This report examines the cascading impact of U.S.-Canada trade tensions on Ontario’s automotive SMEs — from supply chains and investment decisions, to employment, innovation, and government program access — and offers recommendations to strengthen the sector’s resilience.