Car sales to fall 4.6% on tariff uncertainty, economic headwinds, TD says [Yahoo! Finance Canada]
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Source: Yahoo! Finance Canada
Interest rates are likely to remain flat for most of the year, but with monthly payments hovering around $1,000, TD said affordability concerns and a drop in immigration levels will drag the market down. “The Canadian automotive industry managed to weather the storm of elevated trade tensions with the nation's largest trading partner relatively well in 2025, but headwinds are growing as tariffs take greater effect,” the report said. “The need to diversify automotive trade away from its current outsized U.S. concentration will likely be necessary to ensure the long-run viability of the industry amid growing U.S. protectionism.” Vehicle production in Canada has also stalled. Production has declined in all three North American nations, but the 5.4 per cent drop in Canada was the largest. TD said Canadian vehicles effectively face a 15 per cent to 20 per cent tariff rate when exporting to the U.S. since only non-CUSMA-compliant exports face the full 25 per cent. But that's still mo
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