According to foreign media reports, Canadian auto parts manufacturers Martinrea International Inc. (Martinrea) and Linamar Corp. said that the Canadian auto industry may circumvent U.S. tariffs on imported cars and auto parts as the next U.S. President Trump is ready to increase support for the North American automotive supply chain.

Martinrea Executive Chairman Rob Wildeboer said that the policies implemented by Trump during his previous presidency are beneficial to the Canadian auto industry. At the same time, Rob Wildeboer expects that the free trade system established in the United States-Mexico-Canada Agreement (USMCA) will remain unchanged. He also added that a new round of trade negotiations triggered by the USMCA review clause may even be beneficial to Canadian auto parts suppliers.

It is reported that the United States, Mexico and Canada must confirm in writing whether they want to continue to implement the USMCA by July 1, 2026.

Linamar Executive Chairman Linda Hasenfratz said that although Trump needs to realize the importance of Canada, automotive industry leaders still have an obligation to make it clear to the U.S. government that the integrated supply chain in Canada is an advantage. “It is the responsibility of all of us to make it clear to the new U.S. administration that the three North American countries (the United States, Canada and Mexico) will be more globally competitive by cooperating, optimizing their assets and strengthening their connections.”

Linda Hasenfratz added that auto parts cross borders an average of seven times before they are finally assembled in the car, so any import taxes will accumulate quickly. “If we intend to impose import tariffs on every border crossing, it will incur a lot of costs.”

Linda Hasenfratz said that the results of the U.S. presidential election show that Americans are concerned about the economy, inflation and employment. “Imposing import tariffs may help in terms of employment, but it will have a huge negative impact on inflation, and Americans can no longer afford higher costs than they are now.”

Maintaining the U.S.-Canada agreement is not the only element to keep the North American automotive supply chain intact and tariff-free. Unlike the United States and Canada, Mexico has not yet imposed additional taxes on electric vehicles, aluminum and steel imported from China.

During his campaign for the U.S. presidency, Trump said that if he was elected, the U.S. government would impose a 10% tariff on all imports. But Rob Wildeboer told analysts at its third-quarter earnings conference: “We believe that U.S. import tariffs and trade policy will be primarily targeted at China.” Linamar CEO Jim Jarrell also told analysts at its third-quarter earnings conference that the company does not expect Canada to be a focus of the Trump administration’s trade policy. “The focus of U.S. import tariffs will be on Asia, especially China.”