The new automobile tariffs are looming over Canada’s economic horizon, as some cities are expected to suffer more repercussions than others. These metropolitan hubs are part-powered economic systems that run on part suppliers, logistics networks, auto dealers, and tens of thousands of well-trained personnel. Here are 20 cities that will be hit hardest by new car tariffs:
Windsor
Windsor is located at the centre of Canada’s automotive sector and will likely suffer the most brutal blow from auto tariffs. Windsor has more than 40,000 direct and indirect jobs in automobile manufacturing, including at big assembly plants such as Stellantis. With more than 25% of Windsor’s workforce directly or indirectly related to vehicle manufacturing or component supply, any interference with trade can be disastrous. Tariffs might shrink U.S.-bound exports and increase the expense of imported parts, compelling companies to reduce activity or lay off workers.
Oshawa
Oshawa, once the Canadian hub of General Motors, has been rebuilding its automobile presence with a refurbished GM plant and ancillary industries. Over 5,000 individuals in the city work in auto-related industries. With so many components imported internationally, new tariffs would increase costs by up to 20%, cutting profitability and slowing production. The local economy of Oshawa relies substantially on the manufacture of autos and their offshoots, from robots to shipping. A disruption to trade would derail this rebound, threatening thousands of jobs and the city’s economic momentum at the very point it is establishing new ground.
Alliston
Alliston is the location of Honda’s Canadian factory, which manufactures over 400,000 cars a year and sustains over 4,200 direct jobs. Tariffs could dramatically increase the cost of production, particularly with the plant based on parts brought in from overseas. If consumers are hit with price increases of $4,000–$6,000 per vehicle, demand could fall, slowing production and threatening layoffs. This would affect the plant and dozens of local businesses and suppliers across Simcoe County.
Oakville
Oakville hosts the Ford Assembly Complex, employing over 3,000 people and producing vehicles mainly for the U.S. market. With over 85% of production exported, any disruption to cross-border trade from new tariffs could severely impact operations. The auto sector contributes significantly to the city’s tax base and supports thousands more in logistics, parts, and service industries. If tariffs cut U.S. demand or increase component prices, the ripple effect would spread rapidly throughout Halton Region.
Cambridge
Cambridge is a key component of Ontario’s auto strip, with Toyota Motor Manufacturing Canada’s central facility employing about 8,500 employees. The factory produces cars like the RAV4, a top-selling North American SUV. Production levels may be missed if tariffs increase input prices or make supply chains more difficult, putting jobs and output at risk. Cambridge’s broader economy, encompassing thousands of supplier businesses and logistics firms, relies on this plant operating efficiently. A slowdown related to tariffs has the potential to ripple through the Waterloo Region, hurting a community that has come to depend on the auto industry for prosperity and economic stability.
Ingersoll
Ingersoll is the home of the CAMI Assembly plant, which manufactures electric delivery vehicles and once made compact SUVs. The plant directly employs more than 1,500 workers, with hundreds more in supporting industries in the area. Parts or material battery tariffs may raise production costs, making Canadian EVs less competitive. This could slow down expansion plans and neutralize hiring when the industry shifts towards electrification. For a town where manufacturing accounts for more than 20% of local jobs, any disruption will lead to job loss and lower consumer spending.
Brampton
Brampton’s Stellantis assembly plant employs nearly 3,000 workers and produces high-demand vehicles like the Dodge Charger and Challenger. These models are exported predominantly to the U.S., making the plant extremely sensitive to tariff increases. Rising production costs or decreased demand could jeopardize the facility’s operations. Brampton’s auto supply chain includes machine shops, plastic molding, and electronics firms, all of which would feel the impact of a slowdown. The local economy, while diverse, would still be rocked by job losses in such a central industry, and a tariff hit could reverse years of growth and investment in the region.
Guelph
Guelph, the headquarters of Linamar Corporation, is a critical part of the automotive parts industry in Canada. Linamar alone has thousands of employees and furnishes components to automakers throughout North America. If tariffs cause cross-border shipments to be interrupted, the company might lose business or have to absorb increased expenses, which can lead to layoffs. Approximately 18% of workers in Guelph work in manufacturing, much of which is automotive. A tariff shock would not just imperil these jobs but might also dampen local business investment.
Vaughan
Vaughan’s industrial core consists of scores of automotive component manufacturers with more than 12,000 employees. These companies supply assembly plants throughout Ontario and into the United States. Tariffs would raise the cost of raw materials and components, cutting profit margins and export competitiveness. Vaughan’s transport infrastructure, which was conceived to rush goods across borders, would be less valuable if trade slowed down. Local enterprises, from metal fabricators to electronics suppliers, might have to cut back. With the city diversifying and growing quickly, a surprise tariff-related collapse of its most significant industrial sector could stress public service planning, housing, and employment.
Richmond
Richmond, British Columbia, while not conventionally noted for vehicle manufacturing, is an import and part distribution centre and logistics hub. Given the Port of Vancouver’s large share of auto imports, any tariff-driven shipment cut could impact thousands of warehousing, shipping, and customs processing employees. Richmond also has regional offices and distribution centers for car brands and auto parts retailers. A falloff in the supply chain can cut hours, freeze new hires, and raise operating expenses, which can slow economic growth.
Toronto
Canada’s largest city, Toronto, is a vehicle sales, financing, and parts distribution hub. It doesn’t have big auto assembly plants but sustains tens of thousands of jobs in dealership networks, aftermarket services, and corporate auto offices. With more than 500,000 cars sold yearly in the Greater Toronto Area, tariffs that add $4,000 or more to car prices might cause dramatic declines in consumer demand. This would also damage dealerships, salespeople, lenders, and repair facilities. A decline in auto sales would resonate throughout Toronto’s service-based economy, particularly in low-income communities with tight affordability.
Mississauga
Mississauga is a transportation hub and an essential node in the flow of auto parts and finished vehicles throughout Canada and the U.S. More than 15,000 individuals in the city are employed in transportation equipment manufacturing and support services. Most auto parts makers and providers have headquarters there, such as international companies needing uninterrupted trade. Tariffs can eat into their profit margins, undermine international contracts, and result in cost-cutting or job losses. Mississauga’s sophisticated infrastructure and positioning are assets only as long as trade can flow freely, as new tariffs jam the flow and rock one of Ontario’s most vibrant economies.
London
London boasts a developing auto supply sector with a robust advanced manufacturing and engineering foundation. Approximately 10,000 individuals in the area are employed in producing automaker parts, molds, and precision tools. Those items tend to be exported to the U.S., and duties might make them less competitive or compel manufacturers to incur losses. London’s economy has struggled diligently to diversify, but over 12% of its workforce remains in manufacturing. A significant decline in auto-related production might halt local investment, lower wages, and pressure community services relying on predictable tax income.
St. Catharines
St. Catharines boasts a large General Motors powertrain facility with almost 1,000 employees and manufactures engines and transmissions for cars sold throughout North America. Tariffs on these parts or their raw materials might increase prices and induce production cuts. The Niagara area around the plant stands to gain significantly from the plant’s operations, with small makers, logistics companies, and metal distributors benefiting. With about 1 in every 6 St. Catharines jobs related to manufacturing, a downturn in automotive production could destabilize the local economy.
Laval
Laval, a central city in Quebec’s automotive manufacturing base, boasts an increasing cluster of auto parts suppliers that make everything from electronics to plastic parts. These companies are directly connected with Ontario assembly plants and depend on cross-border trade to keep production going. New tariffs might interfere with contracts and increase operating expenses by up to 10%, prompting layoffs or lower production. With over 8,000 factory jobs in the city, some of which are connected to transport and machinery, Laval’s industrial base is exposed. The broader regional economy, including Montreal-area auto dealerships, might be squeezed too much by declining demand and increasing vehicle prices.
Sherbrooke
Sherbrooke’s economy features a potent blend of light industry and high-technology auto parts suppliers, with more than 5,000 jobs committed to transportation and machinery manufacturing. Participating in Quebec’s innovation corridor, these companies often use just-in-time delivery systems and international supply chains. Tariffs could upset these systems, increasing the cost of production and threatening export relationships. Sherbrooke’s schools and research centers might also experience indirect impacts as R&D expenditures by industry decelerate.
Barrie
Barrie is a developing part of Ontario’s auto supply chain. Some residents drive to work at nearby plants, including those in Vaughan and Alliston, and others work for local machine shops and logistics operations connected to the auto industry. Tariffs on these nearby centers could diminish employment prospects and commuter wages entering Barrie. Higher car prices also could curb sales at the city’s numerous dealerships, which have thrived as the surrounding population grows. If tariffs continue, Barrie’s economy, tied closely to central Ontario’s auto corridor, might experience slowed growth and increased unemployment.
Pickering
Pickering belongs to the Greater Toronto Area’s eastern industrial sector, serving several auto part makers and distribution facilities. Its location near Oshawa’s GM factory and highways makes it essential for supply chain efficiency. If tariffs interrupt parts delivery or inflate input prices, Pickering’s manufacturing sector, which is already facing competitive pressure, could contract. The city has seen industrial job growth over the past decade, but this could reverse quickly if companies face shrinking margins. With over 5,000 residents employed in goods production and related logistics, tariffs clearly risk Pickering’s economic momentum and employment landscape.
Chatham
Chatham-Kent, whose past is associated with auto manufacturing and parts production, has several manufacturing facilities related to the sector. The area is also a center for farm equipment and transport vehicles, which cross into auto supply chains. More than 3,500 local positions are reliant on these industries. If tariffs diminish demand or raise the cost of imported parts, it may cause production reductions, suspended hiring, or plant closures. Chatham’s rural economy depends on manufacturing stability, and an abrupt drop in auto-related manufacturing would affect everything from retail in the local area to property values and tax-supported services.
Lévis
Lévis, just across the river from Quebec City, has major industrial employers such as Desjardins and shipbuilding, but it also encompasses companies manufacturing automotive electronics and components. With more than 4,000 industrial manufacturing jobs associated with transport equipment, Lévis has become a part of Quebec’s larger automotive network without much fanfare. Tariffs would make it more difficult for these firms to compete globally, lower exports, or postpone new projects. Economic shock would be experienced regarding job losses and lower business-to-business expenditures.
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