Canada’s auto industry faces a pivotal challenge amid global tariff pressures and shifting trade dynamics. With over 500,000 jobs and $93 billion in annual economic activity at stake, supporting this vital sector is more important than ever. Here are 25 ways to support Canada’s auto industry during the tariff crisis:
Buying Canadian-Made Vehicles
Buying a vehicle made in Canada benefits local assembly plants directly, saving jobs and economic momentum. As of 2024, Canada produces approximately 1.2 million cars per year, down from its high point in 2000 at 3 million. Tariffs on imported foreign vehicles, particularly from Asia or the U.S., would increase prices by 10-25%, encouraging consumers to purchase domestically. Vehicle manufacturers such as Toyota (Cambridge), Honda (Alliston), and General Motors (Ingersoll) have large facilities in Ontario, representing more than 70,000 direct employment and thousands of indirect jobs. Canadians purchasing domestic vehicles can close the demand loop in our economy, lessen dependence on imports and keep revenue in-country.
Encouraging Local Auto Parts Manufacturers
Canada’s auto parts sector adds over $35 billion to the Canadian GDP and directly employs over 100,000. Tariffs disrupt global supply chains, making locally produced parts more economical. Firms such as Linamar and Magna International are Canadian-headquartered, worldwide leaders, but are dependent on stable demand to maintain R&D and operational effectiveness. Keeping dollars within the economy through local suppliers diminishes the trade deficit as well as the dangers of backlogs or surcharges on imports. Each dollar invested in locally produced parts recycles 1.5 times within the home economy compared to imported parts, supporting regional manufacturing clusters.
Supporting Pro-Industry Policies
Pro-automotive government policies can protect employment and stimulate industrial strength during tariff emergencies. In 2023, Canada’s auto sector was invested in $14 billion of new public-private investment pledges, much of which was for EV conversion and job retention. Advocacy through political action, public comment, or petitions can safeguard policy to prioritize industry requirements like tariff exemptions, investment tax credits, and employment training programs. Effective policy also drives foreign capital investment, including Stellantis and LG’s $5-billion EV battery plant in Windsor. Statistics indicate that each $1 invested by government assistance in the industry yields $8.60 of economic returns in 5 years.
Investing in Canadian EV Startups
Electric vehicle startups are Canada’s clean mobility future, particularly as the global EV market is projected to expand by 24.2% annually. Investing in companies like ElectraMeccanica, Daymak, or Lion Electric finances innovation and builds homegrown alternatives to Tesla and BYD. Canada’s electric vehicle sector attracted more than $10 billion of investment in 2023, but startups remain short of capital. Direct investing through venture capital, crowdfunding, or public markets by Canadians reduces foreign reliance and fosters the creation of tech jobs. Employment growth in Canadian EV firms is predicted to expand by 28% by 2026 if adequately funded.
Encouraging Auto Industry Apprenticeships
Highly skilled trades are the foundation of Canada’s auto sector, but its aging population endangers productivity. Statistics Canada finds that more than 36% of skilled workers are aged above 55 years, and fewer than 5% of youths take up these careers. Supporting apprenticeships for mechanics, robots, and electric systems tackles skills shortages and helps to ensure long-term competitiveness. Government programs funded by the Canadian Apprenticeship Strategy offer a maximum grant of $4,000 per participant. Raising apprentice levels by only 10% would provide an additional 6,000 workers each year, offsetting the anticipated 20,000-worker deficit by the year 2028.
Utilizing Canadian Dealerships
Selecting Canadian-owned dealerships promotes local jobs, tax collections, and national market data monitoring. More than 3,200 new motor vehicle dealerships operate in Canada, employing over 160,000 employees and generating $120 billion in annual sales. In the face of tariff-induced price increases, Canadian dealerships offer customized financing, trade-in incentives, and service packages to offset the additional expenses. In contrast to foreign-owned websites, these dealerships invest profits locally, sometimes sponsoring local events and vocational training. Even utilization of their service facilities generates greater economic activity in the community than contracting with U.S. providers.
Industry Event Participation
Visiting events such as the Canadian International AutoShow in Toronto or the EV & Charging Expo increases public interest and industry confidence. These expos generate more than $450 million in regional economic activity annually and attract over 350,000 attendees. In times of tariff crises, visibility is essential to sustaining consumer demand and investor confidence. Industry events also serve as platforms for knowledge sharing, policy discussions, and intersectoral cooperation. Higher attendance also benefits the tourism, hospitality, and logistics sectors that are closely associated with automotive well-being.
Sharing Auto Innovation Success Stories
Sharing success stories publicly, such as Project Arrow or Magna’s AI auto tech, increases national pride and investor confidence. Social media campaigns, blogs, or school assignments can influence public perception. According to a Deloitte survey, 72% of Canadians are likely to favor brands or industries perceived as innovative and domestically based. From an economic perspective, narrative framing influences investors, consumer confidence, and trust among trade partners. Emphasizing innovation also brings in STEM talent to fill more than 45,000 anticipated automotive engineering positions by 2030.
Buying Certified Pre-Owned Canadian Vehicles
Buying certified pre-owned vehicles from Canadian stock helps keep money local and within the dealership networks. CPO vehicles are thoroughly inspected and frequently are backed by warranty extensions, offering a safe and cost-effective choice over new cars, particularly as new car prices in Canada reached an all-time high of $66,000 on average in 2024. CPO sales accounted for 32% of total dealership sales last year, representing an 11% year-over-year increase. Choosing Canadian-sourced CPOs reduces importation expenses, eludes foreign markups, and extends a greener lifecycle through reuse.
Supporting Infrastructure Projects
Infrastructure projects, such as EV charging networks, intelligent roads, and mass transit electrification, generate direct employment and demand for domestically produced auto technologies. The Canadian government invested more than $3.2 billion in EV infrastructure in 2023, but the implementation is based on public and private funding. Infrastructure Canada says that every $1 million invested in infrastructure creates 10.8 direct and indirect jobs. Supporting such projects ensures that locally manufactured vehicles have a functioning ecosystem, promoting local vehicle use and reducing reliance on overseas systems.
Selecting Canadian Tires and Accessories
There are a number of high-performance auto accessory makers in Canada, including Fast Wheels, WeatherTech Canada, and Hercules Tires. Selecting their products helps maintain domestic production and keeps the supply chain strong amidst import bans. The Canadian automotive aftermarket is valued at over $22 billion annually and employs more than 400,000 individuals. Increases in tariffs on rubber and steel products have raised the price of imported tires and accessories by 8-12%, making Canadian alternatives more competitive. Every purchase from a local brand decreases vulnerability to volatile currency fluctuations and geopolitical pricing shocks.
Advocating for Auto Industry Unions
Unionized groups, such as Unifor and the Canadian Auto Workers Union, bargain collective contracts that protect wages, working conditions, and pension benefits for over 150,000 employees in the auto industry. During a tariff emergency, union-backed advocacy can also compel policy easing and restructuring appropriations. Unionized employees have an average pay of 18% higher than their non-union counterparts, supporting domestic purchasing power and economic stability. Increased wages also equate to increased consumer spending, a significant component in supporting national automotive sales.
Advocating for Lower Business Taxes
Reducing taxes on business for automakers and suppliers can cover tariff expenses and ensure profitability. Canadian corporate tax rates are approximately 26.5% (combined federal and provincial rates), while those of the U.S. stand at 21%. Although the difference appears slight, even a 1% decrease would save automakers up to $150 million annually across their operations. Such funds can be allocated to employee training, product development, and technological enhancements. Economic models from the Fraser Institute suggest that a 1% reduction in corporate tax is worth 0.3% of GDP growth over five years.
Promoting Local Fleet Procurement
Cities and businesses purchase hundreds of cars every year, making fleet procurement a crucial tool to support domestic automobile production. In 2023, fleet sales comprised 21.4% of total vehicle sales in Canada. Promoting public sector organizations to select Canadian-made vehicles, including from GM’s CAMI factory or Honda’s Alliston plant, supports local jobs and lowers procurement prices in the long term through proximity and service availability. If only 30% of public fleets did this, it would direct over $3 billion to local manufacturing each year. Aside from economic contribution, local buying creates a model of sustainable and patriotic business. The City of Toronto has more than 5,000 vehicles, and replacing even half of them with Canadian Dynamics models would give hundreds of factory workers direct work.
Donating to Automotive Training Institutions
Donating to colleges and vocational schools provides the next generation of auto technicians and engineers with training. Automotive courses at Centennial College, BCIT, and NAIT train more than 20,000 students each year. However, software and equipment used in contemporary diagnostics or EV repair can run $500,000 or more per facility. Cash, equipment, or vehicle donations fill budget holes and guarantee graduates are job-ready. A single $50,000 donation could cover the training of 10 or more apprentices annually, building a pipeline of skilled labor during a time when labor shortages imperil the auto industry’s resilience.
Volunteering for Auto Tech Programs
Skilled professionals volunteering to teach or mentor students can drastically improve training quality and student engagement. Canada’s auto industry is expected to require approximately 25,000 new technicians by 2027; however, training capacity and retention rates are currently lagging. Through volunteering in high school co-ops, college workshops, or local STEM events, professional mechanics or engineers can impart practical experience, improve morale, and lower dropouts. Statistics Canada research indicated that mentorship improved completion rates of trade schools by 17%. It’s also a chance to guide students towards hot areas such as EV maintenance or ADAS calibration.
Encouraging STEM Education in Schools
Canada’s future automotive workforce relies on a strong STEM foundation. Although 75% of high-paying auto sector careers involve STEM competencies, less than 30% of Canadian secondary school graduates enroll in science or technology post-secondary programs. Exposure early on through robotics clubs, coding camps, or industry presentations can create interest. The return on investment is considerable as each 1% growth in STEM student enrollment adds $2.5 billion to long-term GDP through innovation-driven economic growth. With the inclusion of auto-themed modules in school courses, Canada has the potential to align education and industry requirements, lessening the need for future foreign engineers.
Creating Community Maker Spaces
Community maker spaces equipped with 3D printers, diagnostic equipment, and fabrication tools enable hobbyists and youth to tinker with car technology. These spaces provide an environment where innovation is developed, early-stage entrepreneurship is encouraged, and real-world learning occurs outside the school. Maker spaces like Vancouver’s MakerLabs or the Ottawa Makerspace have helped launch more than a dozen vehicle-related start-ups since 2017. Having 85% survival rates among start-ups linked to them, expanding their availability directly stimulates industrial growth. Grants from the city or public-private partnerships would help expand their availability.
Promoting Employee Car Discounts
Offering incentives to employees to purchase cars built in Canada boosts domestic demand. Programs like Stellantis’ Employee Purchase Plan have proven that internal discounts can boost sales by up to 12% annually. If more Canadian car manufacturers struck such arrangements, possibly even tax-subsidized ones, it would offset tariffs while maintaining levels of production. With worldwide pressure from shortages pushing vehicle markups above $5,000 on average, employee incentives bridge gaps in affordability and foster brand loyalty, creating word-of-mouth and repeat business.
Offering Business Mentorship to Startups
The auto-tech and EV startup environment in growth within Canada frequently overlooking experienced mentorship in scaling, regulatory requirements, and international trade. The pairing of retired executives or business veterans with startups significantly improves survival rates and time-to-profitability. According to Startup Canada, mentored startups drive revenue 83% faster and are 2.5 times more likely to survive for over five years. The mentorship model also facilitates cross-generational knowledge transfer and enhances networking opportunities, which are crucial for accessing capital or government programs.
Collaborating on Local R&D Projects
Collaboration among manufacturers, universities, and government research institutions speeds car innovation. Projects like Project Arrow or McMaster Automotive Resource Centre have shown that local partnerships produce world-class products. With over $1.1 billion per year in auto-industry R&D expenditures in Canada, even partial cooperation accelerates the dissemination of knowledge and patent creation. Joint ventures also enable the sharing of resources, reduce costs, and facilitate faster prototyping. When local stakeholders collaborate, they also create high-value AI, materials science, and battery research occupations, which are all fields key to competing on the global stage.
Lobbying for International Trade Fairness
Continued lobbying at trading platforms like the WTO or through NAFTA/USMCA talks guarantees equitable terms for Canadian auto manufacturers. Canada has been disproportionately targeted by American protectionism, particularly EV incentives favoring the American assembly. In 2023, a CVMA report estimated that discriminatory trade measures denied Canada’s automotive industry over $2.4 billion annually. Concerted lobbying by chambers of commerce, trade unions, or think tanks is crucial to achieving parity, eliminating double tariffs, and ensuring market access.
Supporting Green Auto Innovations
Green car technologies, such as hydrogen fuel cells, recyclable interior materials, or biodegradable lubricants, open up new market niches and solidify Canada’s position in clean transportation. The green auto-tech sector is also expected to represent $75 billion in Canada by 2030. Government funding, including the Strategic Innovation Fund (SIF) and the Sustainable Development Technology Canada (SDTC), has provided over $3.7 billion to green projects over the past five years. By investing in startups and scale-ups in the field of eco-automotive technology, Canadians can foster resistance to fossil fuel-induced trade disputes and contribute to convergence with global carbon reduction targets.
Spurring Tourism for Auto Shows
Canadian auto shows are not expos, they’re engines of commerce. Expos such as the Montreal and Vancouver International Auto Shows attract over 700,000 combined tourists, each spending an average of $350 on accommodations, food, and travel. Marketing domestic and international visitation benefits the hospitality sector and supports the public relations efforts of the automotive industry. More tourism promotion, bilingual communications, and travel alliances can contribute an additional 15-20% to exhibit revenue, helping to sustain these vital public forums of participation in periods of tariff controversies.
Investment in Public Awareness Campaigns
Strategic public information campaigns inform consumers about the benefits of purchasing Canadian cars and investing in national innovation. In a 2024 survey, 41% of Canadians remained unaware that the Toyota RAV4 and Honda CR-V are assembled in Canada. Social media, radio, or transit platform awareness campaigns can drive consumer behavior en masse. For example, a $1 million advertising campaign by the Canadian Steel Producers Association raised local product preference by 8% over six months. Auto campaigns might similarly enhance customer loyalty and pressure policymakers to institute pro-industry policies.
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