Canada's auto industry braces for slump in US sales

Canada's auto industry is gearing up for a significant downturn in U.S. sales as the specter of U.S. tariffs on Canadian goods looms closer.

Economists are sounding the alarm, highlighting the potential devastating effects of the impending 25-percent tariffs on the Canadian economy, particularly hitting sectors like the auto industry hard.

Oshawa, a city adjacent to Toronto, boasts a rich automotive manufacturing heritage, showcased at the Canadian Automotive Museum. The legacy of the McLaughlin Motor Car Company, which commenced car production in 1907, laid the foundation for the region's early automotive success.

Today, the expansive General Motors plant in Oshawa churns out Silverado trucks, symbolizing a modern chapter in the city's automotive history. However, anxiety grips workers across Canada's auto sector as uncertainty looms.

U.S. President Donald Trump's tariff threats on all Canadian goods, including American brands manufactured in Canada, have cast a shadow of doubt over the industry's future.

"I'll say this past four years probably been the best four years we've had, I've had. Now we have discussions or talks of proposed tariffs. And it's a lot of 'what's going on,' 'what's going to happen to us' on the floor," said Jason Gale, chairperson of the Unifor Local 222.

The auto industry stands as a pivotal economic powerhouse for Canada, generating over 50 billion U.S. dollars in exports, with a staggering 93 percent directed towards the U.S. market.

David Soberman, a professor at the Rotman School of Management, University of Toronto, emphasized the dire predicament facing the Canadian economy and its workforce.

"Seventy percent of our trade goes to the U.S., probably between three and 400 billion dollars a year. And certain sectors especially are extremely integrated, and the automobile sector is one of them. It just doesn't make any economic sense, and it's going to be extremely difficult for the Canadian economy, but also for Canadian workers," said Soberman.

For workers at these plants, the threat of U.S. tariffs evokes profound concern. The looming tariffs could potentially disrupt the auto industry, leading to potential job losses and economic upheaval.

"The people that are building the vehicles, they're going to be out of work almost immediately, and then we're going to have to figure out how to get them back to work and how to keep the industry running. We all have mortgages or rent, we have food, we need to buy utilities. None of that's stuff that doesn't stop because you lost your job," said Gale.

Canada's auto industry braces for slump in US sales

Canada's auto industry braces for slump in US sales

Canada's auto industry braces for slump in US sales

Canada's auto industry braces for slump in US sales

Canada's auto industry braces for slump in US sales

From cutting-edge technology exhibitions to retail stores thousands of kilometers away from Europe and Southeast Asia, China-made robot vacuum cleaners are increasingly becoming a popular choice among consumers worldwide.

At electronics retailers in Berlin, Germany, Chinese brands such as Roborock and Dreame occupy prominent positions in dedicated robot vacuum sections, offering a wide range of products priced between 200 and 2,000 euros.

Many local consumers said that when purchasing smart home appliances including robot vacuum cleaners, they tend to give priority to Chinese-made products.

"It's a good price and good quality. It's also the innovation. I have a feeling that the European brands are not innovating enough," said one customer.

"I think they're always on top of the other technologies. They are getting them out faster. A lot of us are switching to the Chinese technology," another consumer said.

Germany is one of the most important overseas markets for China's floor-cleaning robots.

According to data from market research firm GfK, from January to November 2025, more than six out of 10 robot vacuum cleaners sold in Western Europe were Chinese brands.

Industry data also point to a strong global momentum.

According to the International Data Corporation (IDC), global shipments of smart robot vacuum cleaners reached 17.424 million units in the first three quarters of 2025, representing a year-on-year increase of 18.7 percent.

Chinese brands including Roborock, Ecovacs, Dreame, Xiaomi and Narwal ranked among the world's top five in terms of shipment volume, with a combined share of nearly 70 percent of the global market.

At a robot vacuum cleaner manufacturing plant in Huizhou, south China's Guangdong Province, workers were seen stepping up production of newly launched models that recently debuted at the Consumer Electronics Show in the United States, which concluded Friday in Las Vegas, Nevada.

The factory adjusted its production lines as early as December 2025 and stocked inventory in advance for overseas markets to ensure that new products could be delivered to global consumers at the earliest possible time.

"In 2025, Roborock's global shipments exceeded 7.2 million units. Since 2024, overseas revenue has accounted for more than 50 percent of our total revenue. Our products have now been sold to more than 170 countries and regions, serving more than 20 million households worldwide," said Quan Gang, president of Roborock.

At another robot vacuum cleaner manufacturing facility in Dongguan, Guangdong, rising overseas orders have prompted the company to upgrade its production lines with intelligent technologies to further boost capacity. The factory is currently operating at full load to meet a growing demand.

"For 2026, we have already obtained overseas orders worth at least 300 million to 400 million yuan (around 43 million to 57.3 million U.S. dollars). In addition, we've engaged in strategic cooperation with European home appliance group Cebos Group, and our total confirmed orders have exceeded 600 million yuan (around 86 million U.S. dollars)," said Zhang Junbin, founder and CEO of Narwal Robotics.

Chinese robot vacuum brands gain strong global traction