A new report from TD Bank suggests that shifting automotive production entirely to the US could cost automakers an estimated US$50 billion. The report comes amid potential US tariffs on Canadian imports, with President Trump advocating for US automakers to build vehicles in Detroit.
While Canada's share of auto production has been declining, resulting in a balanced trade in light vehicles and parts between Canada and the US, Mexico's share of North American auto production has increased. This has led to a US$106 billion automotive trade deficit for the US with Mexico in 2023.
The TD report estimates that moving seven to eight million units of production back to the US would likely cost upwards of US$50 billion, a burden likely to be passed on to American consumers.