Tariff Troubles: New study from Canadian Chamber of Commerce indicates automotive sector would be second-most negatively affected area as a result of United States’ tariffs

Ottawa, Ontario – A new report from the Canadian Chamber of Commerce indicates that the country’s automotive and parts manufacturing sector would be the second-most negatively impacted area as a result of United States’ tariffs.

The study, which uses data from the Canadian Chamber’s Business Data Lab, specifically explores cities and services that would be most impacted by United States’ tariffs.

When looking at the automotive sector specifically, while the sector is the second-most vulnerable area following the oil and gas industry, its prevalence across the country potentially puts multiple regions at risk.

Notably, when looking at potentially vulnerable areas, South Western Ontario placed 3rd to 6th due to automotive production in Windsor, Kitchener, Cambridge, Waterloo, Brantford and Guelph.

Quebec’s most trade intensive cities would also be affected by tariffs placed on the automotive sector, says the Canadian Chamber of Commerce, with the study placing Quebec’s regions as being 7th, 9th, and 12th most at risk.

“Quebec is home to the next group of higher-tariff-risk cities. The Saguenay-Lac-Saint-Jean region is 7th on the list. It’s responsible for roughly one third of Canada’s aluminum production, with around 85 percent of this exported to U.S., largely to serve the auto sector, and related production facilities,” says the study.

Finally, the study puts Hamilton, Ontario in 8th place in terms of automotive sector vulnerability due to it being the steel capital of Canada, with materials being used in automotive production, construction and manufacturing.

To see the full study, click here.