Trump 2.0: The First 100 Days | Canada

Canadian Auto Sector Spotlight Manufacturing Employment

Impact on CRE

• Canada exports more than 90% of the vehicles it produces, and about 96% of the industry’s exports go to the U.S. • Motor vehicle and parts exports account for 14% of all exports (prior slide), and motor vehicle exports to the U.S. account for about 3.4% of Canadian GDP. • Because factories in Canada often assemble imported components, the industry’s value added to GDP is shy of 1%. In other words, the upcoming decline in auto exports will coincide with a decrease in parts imports. • Given their current magnitude, the tariffs also erase the cost advantage of producing in Canada. • Less activity from the auto and auto parts manufacturing sectors will have downstream effects on transportation and logistics economic activity, and related CRE demand.

Metros With Largest Number of Auto Jobs (Ths.)

Metros With Most Reliance on Auto Jobs (% Nonfarm)

Toronto

Windsor

Windsor

Guelph

Kitchener

Barrie

London

London

Montreal

Kitchener

Guelph

Oshawa

Hamilton

St. Catharines

Barrie

Brantford

Oshawa

Hamilton

Winnipeg

Toronto

0

10

20

30

40

0% 15% 30% 45%

Source: Statistics Canada, Moody’s Analytics

Cushman & Wakefield

10