North America

The 2025 U.S. tariffs are significantly impacting the automotive sector. Canada is exempt from the general 10% energy tariff under the U.S.-Mexico-Canada Agreement rules, Canadian EVs and parts may still face future tariffs if they contain non-U.S. components. In response, Canada has imposed retaliatory tariffs on certain U.S. vehicles and components, while both countries seek to maintain their highly integrated fuel and EV supply chains.

In the U.S., the tariffs are part of a broader strategy to address trade imbalances, targeting imports from countries perceived as engaging in unfair trade practices. While the automotive sector remains a focal point, the policy also impacts alternative energy products, prompting automakers and suppliers to reassess their supply chains and re