KPMG Canada’s latest survey reveals that the Canadian auto sector is experiencing a deep structural shift amid escalating trade tensions with the United States. Of the 128 automakers and suppliers surveyed, 82% are actively revising supply chain strategies and 70% are exploring new international markets. The changes come in response to U.S. import tariffs and restrictions that have disrupted cross-border automotive flows — traditionally a cornerstone of North American manufacturing integration.
About 63% of firms have raised prices, while 62% have altered their product mix to adapt to the uncertain trade environment. The survey underscores widespread anxiety: 17% of executives expect to fundamentally overhaul their business, and 9% fear potential failure. Yet, 40% remain cautiously optimistic, believing they can emerge stronger without major restructuring.
Insights for Global Buyers and Suppliers
The findings signal a global realignment in auto supply chains. Buyers should anticipate price volatility and sourcing diversification, while suppliers must enhance flexibility, localization, and multi-market partnerships to mitigate geopolitical and trade risks.
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