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Canada's Vehicle Exports Plunge 33% in January, Driving $3.6 Billion Trade Gap

Statistics Canada attributes the drop to extended retooling for model changes.

Overview

  • January’s passenger-vehicle exports fell by about $1.3 billion to the lowest level in more than four years.
  • Katherine Judge of CIBC said the temporary retooling could set up a rebound in export volumes in coming months.
  • Reporting ties the broader downturn to pressure from President Donald Trump and USMCA rules that encourage shifting assembly to the United States.
  • Automakers have cut production, reduced shifts and laid off workers at Ontario plants, according to published reports.
  • Auto parts exports slipped 2.5% year over year, and the U.S. trade ratio has shifted to roughly US$1.35 in vehicles for every US$1 in parts from about US$5 a decade ago.