U.S.-Made Vehicles Lose 20% Market Share in Canada in First Half of 2026

The market share of U.S.-made vehicles in Canada fell by 20% in the first half of 2026, following Canada's imposition of 25% retaliatory tariffs on American cars and trucks in response to tariffs introduced by Washington.

As a result, major automakers, including Volvo, Tesla, Subaru and Mazda, have stopped supplying certain U.S.-built models to Canada or shifted some production to other countries to avoid Canadian tariffs. Vehicles manufactured in Mexico, Japan and South Korea can enter Canada without these tariffs.

Meanwhile, Canadian-made vehicles have also suffered from the trade war, with their domestic market share falling by 9% to 11.5%.

Despite the decline, U.S.-made vehicles continue to dominate Canada's auto market, accounting for 28.4% of sales in the first half of 2026, down from 35.4% during the same period in 2025.