Driving the news: Canada imported more vehicles from Mexico than the United States in June for the first time in three decades, as Trump's tariffs reshape North American auto trade flows.
For context: Historically, American exports to Canada exceed shipments to Germany, Mexico, and China combined, reports Bloomberg.
But President Trump's tariffs on foreign vehicles has changed the traditional free flow of cars and parts across North America, prompting Canada to retaliate with its own tariffs on U.S.-assembled vehicles.
As a result, Canadian buyers brought in $784 million worth of vehicles from Mexico versus $689 million from the U.S, per Bloomberg.
Why it matters: Canada is by far the biggest customer for U.S.-made cars and trucks, making this shift a crucial test of how Trump's trade policies will reshape decades-old supply chains between close allies.
Bottom line: The June data may reflect temporary factors, including unusually high U.S. exports to Canada in February and March before tariffs took effect. However, the trend shows how trade policies are forcing both consumers and manufacturers to find new suppliers and adjust long-established partnerships.
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