Front Burner Can Canada’s auto industry survive Trump?
Oct 27, 2025
Dimitry Anastakis, a University of Toronto professor and an expert on Canada's automotive industry, sheds light on the future of Canada's auto sector amid U.S. tariff threats. He discusses the industry's deep-rooted economic importance and the risks posed by American production shifts. The conversation explores the historical integration of Canadian and U.S. auto industries, the implications of the Auto Pact, and potential strategies for Canada to protect its auto sector in a changing landscape.
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Auto Industry's Economic Weight
- The auto sector is Canada's largest value-added manufacturing industry after energy and creates many downstream jobs.
- Dimitri Anastakis says each assembly job supports five to ten more jobs, especially for EVs where multipliers rise to about ten.
Targeted Threats From U.S. Policy
- The current U.S. administration is conducting a targeted campaign that threatens Canadian auto production.
- Anastakis calls it a conscientious attack aiming to end Canada's auto sector, not just normal trade disruption.
How The Auto Pact Built Integration
- The Auto Pact in the 1960s removed tariffs for big-three production across Canada and the U.S. to protect Canadian manufacturing.
- Anastakis describes how Canada used tariffs and incentives to force investment in local parts and assembly and then integrated production across North America.