The National Post reports in its Friday, Sept. 4, edition that rather than trying to protect an industry of the past, Canada and Ontario need a new approach that preserves the part of the auto industry that is truly Canadian.
The Post's guest columnist Randall Denley writes that auto assembly and parts manufacturing are often grouped together, but the auto parts sector, primarily led by Canadian-owned companies such as Magna International, Linamar and Martinrea International, generates more jobs and economic impact than auto assembly. In 2024, there were about 71,400 auto-parts workers in Canada, most of them in Ontario. Vehicle assembly employed 46,700 workers and had a GDP contribution of $7.8-billion versus $11.3-billion for auto parts.
President Donald Trump is correct that the United States doesn't need what he calls Canadian cars, but Americans do require our auto parts. While relocating auto assembly is straightforward, replicating the complex sector that produces numerous inputs is a much greater challenge.
What if Canada were to accept high auto tariffs as part of a broader deal that guaranteed duty-free access for Canadian parts? We'd be keeping the bigger part of the industry and the piece that is Canadian-owned.
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