CBC News is calling 2025 a “turbulent” year for Canada’s auto sector — one dominated by tariff whiplash, softened EV demand and major production shifts that hit workers from Windsor to Oshawa and Ingersoll in Ontario.
The biggest destabilizer was U.S. President Donald Trump’s tariff agenda. CBC highlighted the 25 per cent levies placed on a broad range of Canadian products that took effect March 4, 2025, then were partially rolled back two days later with an exception for goods that complied with the Canada-U.S.-Mexico Agreement (CUSMA). Auto-specific tariff threats followed, and OEMs reported billions in hits as steel and aluminum levies added pressure.
Then there was last fall, in which Ottawa also signalled a major policy shift. In September, Prime Minister Mark Carney paused and launched a review of Canada’s EV sales mandate, saying the move is meant to relieve some of the “extreme pressure” automakers face from tariffs. CBC notes the federal EV rebate program is also on pause, while the new NextStar Energy plant in Windsor is prioritizing batteries for grid storage systems, with the ability to adjust as demand changes.
The year also brought plant-level shocks. In October, Stellantis scrapped plans to build the Jeep Compass at its Brampton assembly plant, leaving roughly 3,000 workers facing uncertainty. General Motors, meanwhile, announced it would cut a third shift in Oshawa — a move expected to eliminate about 750 GM jobs and trigger further supplier layoffs. GM later ended production of BrightDrop delivery vans in Ingersoll, with its Canada chief saying: “This has nothing to do with tariffs or trade,” and “It’s simply a demand and a market-driven response.”
For dealers, the takeaway for 2025 may be to expect pricing volatility, uneven supply, and shifting EV strategies in 2026 as CUSMA review talks near and Unifor’s Big Three contracts expire in September.
