Canadian automakers repeatedly warned Ottawa that permanent U.S. vehicle tariffs could devastate the domestic auto industry, with lobbyists holding 53 meetings with MPs and federal officials in the weeks leading up to the collapse of trade negotiations.“There is no Canadian auto industry without the United States,” Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association, told the Commons trade committee June 9.Blacklock's Reporter said the association represents Ford, General Motors and Stellantis.“The future of the industry and the hundreds of thousands of jobs that it supports requires securing our trade relationship,” Kingston said.Conservative MP Jacob Mantle asked Kingston whether losing access to the American market would effectively mean the end of the Canadian industry.“If there’s no access, there’s no industry?” asked Mantle.“That’s correct,” Kingston replied.Federal Lobbyist Registry records show Kingston held 38 meetings with MPs and officials from the Department of Industry and Privy Council between June 3 and July 22. A lobbyist representing Honda and Toyota held another 15 meetings during the same period.Cabinet had initially agreed to accept a permanent 15% tariff on passenger vehicles before trade talks collapsed Friday, according to unverified accounts of the confidential negotiations.Prime Minister Mark Carney acknowledged Saturday that his government had been prepared to accept some U.S. tariffs on automobiles but wanted Canada to receive preferential treatment.“America wants to tariff everything, but the tariff level you apply should be clearly the lowest,” Carney said. “It shouldn’t be the same as other people. It should clearly be the lowest because you have this added market protection. We weren’t satisfied.”.Kingston had warned MPs that even a permanent tariff regime offering some relief to Canada and Mexico would threaten Canadian production.“If we get to a place where there is no relief for Canada or Mexico in a permanently tariffed North American environment we’ll simply have a smaller industry, perhaps significantly smaller,” he testified.Kingston said Canadian plants produced 1.3 million vehicles last year, with 1.1 million shipped to the United States.“You can’t replace that market, so the production levels will inevitably come down dramatically,” he said.Kingston rejected suggestions Canadian automakers could compensate for reduced U.S. access by finding new overseas markets.“With over 90% of Canadian production destined for the U.S., United States market access and North American integration are the foundation of the auto industry,” he said. “Diversification is not an option.”“There is no world in which we diversify and export vehicles from Canada to the world,” Kingston added. “Ninety % of what is built here is destined for the U.S. market. There is no replacement for that market.”Cross-border auto exports were last subject to a 17.5% tariff in 1964 before the 1965 Canada-United States Automotive Products Trade Agreement established an integrated continental auto market.Tariff-free trade subsequently helped increase Canadian vehicle exports to the U.S. from 7% to 60% of production within a decade.
