Canada imposes certain tariffs and quotas on cars imported from the United States, but not on imports from other countries. Canada also administers these quotas in a way that compels U.S. auto companies to invest in production in Canada instead of on American soil. This is in response to companies that have reshored production to the United States. From April 2025 through March 2026, Canadian imports of U.S. motor vehicles dropped by approximately 22%, compared to the same period in 2024-2025, while exports of motor vehicles from other countries to Canada have risen to meet the demand previously filled by the U.S.