U.S. auto share of Canadian new-car sales falls to 28.4% amid tariff clash
U.S.-built vehicles accounted for 28.4% of new car sales in Canada in the first half of 2026, down from 35.4% a year earlier, as reciprocal tariffs bite.
In the first half of 2026, U.S.-built cars represented only 28.4% of new vehicle sales in Canada, according to JD Power Canada, a notable drop from 35.4% a year earlier. The decline follows a wave of import taxes introduced over the past 18 months, such as a 25% tariff on Canadian-produced cars and looming higher duties on Canadian auto parts, steel and vehicles. Canada responded with its own retaliatory tariffs on American automobiles, steel and aluminum.
Industry analysts link the reduced U.S. share to these trade measures, noting that higher costs are passed to consumers and that Asian and European imports have risen, with Japan’s share climbing to 16.6% and South Korea’s to 15.6% in the same period. Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association, said the data clearly show U.S. trade policy harming the American auto industry. He cautioned that continued protectionism could further erode North American automotive competitiveness.
Why it matters
The shrinking U.S. share in Canada signals how tariffs are reshaping North American auto trade and raising car prices for consumers.
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