Ottawa will need to take evasive action to stem the gradual exodus of US manufacturers from the auto sector. While counter-tariffs and quota reductions will help retain production if US tariffs stay at current levels, more drastic measures – such as lifting tariffs on Chinese EVs in exchange for starting production in Canada – could be needed if the Trump administration continues to tighten the screws on the sector.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services