Automotive

Unifor members ratified three-year agreements covering more than 4,600 workers at four Ontario GM facilities. The contracts secure new investment in Oshawa and St. Catharines, while providing temporary income protection—but no new production commitment—for the idled CAMI plant.

RBC, TD, and CIBC reported third-quarter profits above analyst estimates. RBC CEO Dave McKay said more than 80% of Canadian exports remain duty-free and the average effective tariff rate is approximately 6%. TD said it holds about C$500 million in reserves for policy and trade risks.

Oxford Economics estimates the latest U.S. tariff escalation and Canadian counter-tariffs could leave Canada's real GDP 0.3 percentage points below its August baseline in 2027 and lift consumer prices by 0.3 percentage points. The forecast is an estimate, not an observed result.

Canada's real GDP grew 0.8% in the second quarter of 2026, equivalent to a 3.3% annualized rate and the strongest quarterly expansion since 2023. Final domestic demand rose 1.0%, June GDP increased 0.3%, and Statistics Canada's preliminary estimate indicated little change in July.

Automakers are preparing for U.S. tariffs on Canadian vehicles and parts to rise from 25% to 50% on January 1, 2027 if no agreement is reached. Reuters reported that Canadian-built vehicles represented about 6% of U.S. sales in 2025, while industry sources said the January deadline may leave room for further negotiations.

After trade talks collapsed and U.S. Section 338 tariffs took effect, Ottawa announced 15–50% counter-tariffs on approximately 874 U.S. products, effective September 8, 2026. Targets include steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

Following the collapse of trade talks on August 21, Trump announced tariffs on Canadian automobiles and auto parts will rise from 25% to 50% on January 1, 2027. He also threatened to raise steel tariffs further. Carney called the U.S. terms 'unfair and uneconomic' and suspended negotiations.

Alongside its counter-tariff announcement, the Carney government indicated it would lift select tariffs on U.S. agricultural products, consumer goods, and machinery effective September 1, as a negotiating gesture. Carney noted approximately 85% of bilateral trade is already tariff-free. The selective easing is separate from the broader September 8 counter-tariff package, which remains on track.

50% Section 338 tariffs on Canadian dairy, alcohol, and motor vehicles took effect after a brief 3-day pause. First use of Section 338 of the Tariff Act of 1930. Trade talks between Carney and Trump officials collapsed, ending the pause.

Unifor said Stellantis informed the union on August 12 that it intended to discuss a potential sale of the idled Brampton Assembly Plant with another company. Stellantis said it remained focused on finding a sustainable manufacturing solution; no sale or closure had been confirmed.

At the mandatory six-year joint review, the U.S. declined to confirm a 16-year extension of CUSMA/USMCA. The agreement remains in force but faces annual reviews until 2036. Canada has not begun substantive text-based negotiations with the U.S.

The Supreme Court held that IEEPA does not authorize the President to impose tariffs, invalidating the legal basis for the 25–35% broad tariffs on Canadian goods that had been in force since February 2025. CBP stopped collecting IEEPA tariffs on February 24. Importers became eligible for refunds.

25% Auto Tariff Takes Effect, Ontario Plants Begin Production Halts

The 25% Section 232 tariff on imported automobiles officially took effect. GM Oshawa and Stellantis Windsor subsequently announced temporary production halts affecting thousands of workers, citing tariff uncertainty making production planning impossible.

The 25% Section 232 tariff on imported automobiles took effect. Stellantis then paused production at its Windsor, Ontario, assembly plant for two weeks, citing the tariff and related changes to North American production.