Canada now imports more cars from Mexico than from the United States

For the first time in decades, Canada is buying more cars from Mexico than from its longtime automotive partner, the United States.

Yes, Mexico has officially taken the top spot, ending a 30-year run where US factories dominated Canadian driveways.

The shake-up isn’t just about what ends up parked in the garage, but about tariffs, trade wars, and some very nervous automakers.

And if you think this is just a one-month blip, think again – this might be the beginning of a major realignment in North America’s auto industry.

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Mexico is the winner in this trade dispute

The tipping point came in June, when Canada imported C$1.08 billion ($784 million) worth of Mexican-built vehicles, compared with C$950 million ($684 million) from the US, according to Bloomberg.

That’s the first time the numbers have flipped since the 1990s.

Before the new tariffs rattled the market, Canada was happily importing about C$2.5 billion ($1.8 billion) worth of US-built cars every month.

Suddenly, that flow is shrinking, and the supply chain is scrambling to keep up.

With Canada and Mexico wasting no time to slap on tariffs of their own, this left automakers caught in the middle.

Subaru, for example, decided that Canadian buyers would now get their cars from Japan instead of Indiana.

Mazda took an even more drastic step, and axed exports of its popular CX-50 to Canada entirely.

Others rerouted vehicles from Mexican factories, even if it meant hiring bonded carriers to truck them through US territory.

Canada is eyeing other overseas options

The stakes here are huge.

Last year, Canada imported $23.2 billion in US-built cars, making it a bigger market than the next six US export destinations combined.

If this year’s pace continues, that figure could be chopped in half.

That’s not just bad news for American automakers, but also for the thousands of workers and suppliers who depend on steady Canadian demand.

Meanwhile, Canadians are eyeing even more options.

There are growing calls for Canada to relax its rules and let in European Union-approved cars without forcing them through costly US-aligned regulations.

If that happens, the number of US-built cars sold in the Canadian market could shrink even faster.

For drivers, the changes could mean higher sticker prices, fewer familiar models, and maybe even some fresh new choices from overseas.

Chinese carmaker BYD is already making waves in Europe, with its vehicle carriers packed with thousands of cars en route to the continent.

While the company’s cars still don’t have a presence in Canada, it might only be a matter of time before the country embraces the insanely popular BYD Seagull, which surpassed 1 million units sold in just two years.

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