Carmakers Urge Canada to Renew USMCA by July 1 as 70% of Exports Still Go South
Updated
Updated · Reuters · Jun 9
Carmakers Urge Canada to Renew USMCA by July 1 as 70% of Exports Still Go South
3 articles · Updated · Reuters · Jun 9
Summary
Toyota, Honda, Volvo and Kia are pressing Ottawa to recommit to the USMCA before its July 1 review, arguing Canada’s value as an investment base depends on continued tariff-free access to the U.S.
Toyota raised the pact in 13 of 14 government contacts this year, while Honda did so in 21 of 27; the two Japanese groups produce more than 75% of vehicles made in Canada.
Carney’s government has mounted four trade missions since April 2025 and is pursuing deals across Asia and beyond, but officials say USMCA access remains the baseline pitch to foreign investors.
More than 85% of Canada-U.S. bilateral trade is still tariff-free under the pact, and the U.S. remains Canada’s dominant market, taking nearly 70% of exports worth about C$565 billion last year.
Non-U.S. exports rose 16% to C$213.8 billion in 2025, underscoring diversification progress even as Asian and European investors still prioritize links into the broader North American supply chain.