North American Automakers Back Canada: USMCA Is Key Pillar Against China

On the opening day of the Center for Automotive Research (CAR) Executive Conference in Ypsilanti, Michigan, voices from U.S. and Canadian government and industry were united: Canada is not only an indispensable part of North America’s auto industry—but also a strategic linchpin in countering China’s global automotive rise.

Political Voices: Opposing the Framing of Canada as a ‘Rival’

U.S. Representative Debbie Dingell (D-MI) sharply criticized labeling Canada as an “adversary,” calling it “unacceptable.” She stressed: “Canada is our partner—and our friend. How we treat Canada must be grounded in equality and respect. What we need is USMCA—not unilateral pressure.”

Colin Burd, Consul General of Canada in Detroit, captured the essence of North America’s auto industry in one concise metaphor: “We don’t trade finished vehicles—we co-manufacture them. This interdependence is measured in hours—not quarters.” He noted that decades of refinement have forged a just-in-time production system, seamless cross-border supply chains, and a shared talent ecosystem—core advantages enabling North America to compete globally.

Data-Backed Reality: Deep Integration of U.S.-Canada Auto Supply Chains

Flavio Volpe, President of the Automotive Parts Manufacturers’ Association (APMA), cited hard evidence: Today, roughly 50% of parts used in vehicles assembled in Canada originate in the U.S.—up significantly from 35% before USMCA took effect. In 2019, Canadian assembly plants purchased $29 billion worth of U.S.-made parts to produce 1.9 million vehicles; though output fell to 1.3 million units in 2024, U.S. parts procurement remained steady at $29 billion.

The Real Competitor Isn’t Canada—It’s China

Multiple speakers pointed squarely at China—not their neighbor—as the true competitor. Data shows Chinese EV exports doubled year-on-year in Q1 2026; meanwhile, Canada has activated its annual quota of 49,000 China-made EVs—and excluded those vehicles from federal purchase incentives.

Paul McCarthy, President of MEMA, stated bluntly: “USMCA is our ‘ticket to play’ in global competition. Without the scale and market depth it delivers, North American suppliers simply cannot compete with China.” Pat De Aramo, CEO of Martinrea International, added a stark warning: “Tariffs and protectionism won’t deliver success—some China-targeted tariffs have already been absorbed by Chinese manufacturers, with no price impact. You cannot prosper through ‘protection.’”

Consensus Emerges: Building a ‘Forward-Facing’ Industrial Fortress

In his closing remarks, Burd issued a pivotal call to action: “Let’s build fortresses—together—but ensure every wall faces outward, shielding us jointly from external challenges.” The appeal resonated across the room. Amid deepening U.S.-China strategic rivalry, North America’s auto industry is reaffirming USMCA as its anchor—and the foundational value of integrated manufacturing: weakening Canada weakens itself.