For the first time in more than 30 years, Canada in June imported more vehicles from Mexico than the United States, according to data from Statistics Canada.
First reported by Bloomberg, data from Statistics Canada — the country’s national statistical agency — shows that Canadian importers spent CAD $1.08 billion (US $779 million) on passenger vehicles from Mexico in June, exceeding the CAD $950 million (US $685.3 million) outlay on vehicles from the United States.
Bloomberg reported that it was the first time since the early 1990s that Mexico outsold the U.S. in monthly data on vehicle exports to Canada.
In a statement, Statistics Canada noted that imports of passenger cars and light trucks increased 6.9% on a month-over-month basis in June, “largely on higher imports from Mexico.”
The main reason that Mexico outsold the United States in Canada in June appears to be that Mexican vehicles that comply with the USMCA free trade pact (known as CUSMA in Canada) don’t face tariffs when entering Canada, whereas U.S.-made vehicles do.
“Effective April 9, 2025, the Government of Canada is imposing 25 per cent tariffs on non-CUSMA-compliant U.S.-made vehicles, and on the non-Canadian and non-Mexican content of CUSMA-compliant U.S.-made vehicles,” the Canadian Department of Finance said in a statement.
That tariff was retaliation for United States President Donald Trump’s decision to impose a 25% tariff on vehicle imports. For vehicles made in Mexico and Canada, U.S. content is exempt from the duty, but Mexican and Canadian content is taxed at 25%.
Bloomberg: Mexico’s rise to No. 1 vehicle exporter to Canada may be ‘short-lived’
Bloomberg reported that Canada’s higher outlay on Mexican vehicles than on U.S. vehicles in June underscored “the historic shifts underway as the global auto industry grapples with United States President Donald Trump’s tariffs.”
However, the news agency said that “it’s possible that Mexico’s rise to No. 1 exporter of vehicles to Canada will be short-lived.”
Mexican auto industry rebounds in June with record production
“Canadian imports of U.S. autos were unusually high in February and March, averaging [CAD] $2.5 billion over those two months, as automakers raced to ship their products before any tariffs came in. That compares with a monthly average last year of a little more than [CAD] $1.8 billion,” Bloomberg said.
Mexico’s total exports to Canada increased more than 10% annually in June
Published earlier this month, Statistics Canada’s import and export data also shows that Canada spent CAD $3.007 billion (US $2.17 billion) on imports from Mexico in June, a 10.7% increase compared to the same month of 2024.
The figure represented a 9.7% increase compared to May. Vehicles accounted for around one-third of Mexico’s sales to Canada in June.
Although Mexico exported more vehicles to Canada than the U.S. in June, the value of its total exports to Canada was dwarfed by Canada’s outlay on U.S. goods.
U.S. exports to Canada were worth CAD $39.53 billion in June, or 13 times the value of Mexico’s exports to Canada.
Canada also spent more on imports from China in June — CAD $5.93 billion — than on imports from Mexico.
In addition to vehicles, Mexico exports a range of other products to Canada, including auto parts, fruit, telephones, metal, meat and alcoholic beverages.
Around 80% of Mexico’s export revenue comes from products shipped to the United States, but earnings from goods sent to Canada have increased in recent years.
Mexico’s exports to Canada were worth US $18.9 billion in 2024, according to the Bank of Mexico, accounting for just over 3% of total export revenue, which was a record high US $617 billion last year.
With reports from Bloomberg
Source: Mexico News Daily
