The Financial Post reports in its Thursday edition that for the first time in 30 years, Canada imported more vehicles from Mexico than the U.S. in June, with $1.08-billion from Mexico compared with $950-million from the U.S., says Statistics Canada. A Bloomberg dispatch to the Post reports that this shift highlights the impact of President Donald Trump's 25-per-cent tariffs on foreign vehicles, which have disrupted the free flow of vehicles across North America. In response, Canada imposed a similar tariff on U.S.-assembled vehicles but offered relief for automakers that maintain manufacturing in the country. Canada's imports may indicate how Mr. Trump's tariffs will affect American industry, as it is the largest customer of U.S.-made cars and light trucks. American exports of finished vehicles to Canada exceeded exports to Germany, Mexico and China combined. Companies such as GM and Ford generally serve the Canadian market with vehicles made in the U.S. Ford is not currently making anything at its lone Canadian assembly plant in Ontario, though it has promised it will start making F-series Super Duty pick-ups there next year. It is possible that Mexico's rise to No. 1 exporter of vehicles to Canada will be short-lived.
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