Canada’s auto sector is strengthening its strategic position with a new industry association ahead of the official review of the U.S.-Mexico-Canada Agreement (USMCA).
The details: The newly formed Pacific Manufacturing Association of Canada (PMAC) is expected to bring added negotiating weight to the review of the trade pact that updated NAFTA during President Donald Trump’s first term.
PMAC represents Toyota and Honda, which accounted for 77% of vehicles built in Canada in 2025, reported Wards Auto.
Toyota operates three Canadian assembly plants—two in Cambridge, Ontario, and one in Woodstock—building the RAV4, RAV4 Hybrid, and Lexus RX models.
Honda has two plants in Alliston, Ontario, producing the Acura CSX Sedan, Honda Civic Sedan, Si and Coupe, plus the Ridgeline and Acura MDX.
What they’re saying: “We’re all wanting a trade deal with the USA, making sure that gets sorted out, to build a globally competitive automaking industry in Canada,” said Brendan Sweeney, president and CEO of the association, per Wards Auto. “We’re optimistic, but we’re realistic that we’re going to get something done, but it won’t be easy.”
Why it matters: Any changes to USMCA could have direct implications for North American vehicle production, pricing, and supply flow—making the review highly relevant for dealers, particularly those reliant on cross-border inventory and high-volume import nameplates.
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Between the lines: President Trump’s plans for the review remain unclear, but signs point to significant proposed changes, particularly amid rising tensions with Canada.
U.S. officials have discussed proposals requiring imported vehicles to include a minimum share of U.S.-made components.
Another proposal could limit automakers’ ability to reduce tariff liabilities under USMCA, potentially raising the cost of moving vehicles across North American borders.
What they’re saying: It is a “bad industrial policy,” said Commerce Secretary Howard Lutnick at the Semafor World Economy summit in Washington, per Bloomberg. “I think it needs to be reconsidered and re-imagined correctly.”
Bottom line: The formation of PMAC signals automakers are preparing for a potentially contentious USMCA review with real implications for cross-border production and supply, highlighting the importance for affected dealers to closely monitor inventory sourcing and OEM guidance on potential pricing shifts.
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