International Trade Committee on June 9th, 2026

[Ali Ehsassi, Liberal, Willowdale, ON]

Okay. You provided some numbers. Chinese production is up 10%. North America is down 2%. What is Europe down in the last year?

[Brian Kingston]

I don't have that data. I can get it for you, but off the top of my head I'm not sure.

[Ali Ehsassi, Liberal, Willowdale, ON]

In terms of data, could you tell us how much more expensive these tariffs have made the average car produced in North America?

[Brian Kingston]

The estimates vary from about $5,000 U.S. to a maximum $12,000 U.S. for a vehicle. It's significant.

[Ali Ehsassi, Liberal, Willowdale, ON]

It's very significant. Understood.

As you know, there's a lot of discussion about rules of origin and changing those. These are reports that we see in different publications.

What would you say about that? First of all, do you think, insofar as the auto sector is concerned, that these rules of origin changes would be best discussed between the three North American partners?

[Brian Kingston]

Absolutely. The current rules of origin are trilateral, so any changes need to be trilateral, as well, but I do caution against any changes to the rules of origin. This is a new agreement. CUSMA is only six years old, and it has some of the most advanced rules of origin that we've ever negotiated. Auto manufacturers took years to change their supply chain to come into compliance with the 75% North American content rule. To do this now and to require even more North American content or U.S.-specific content is just more cost and ultimately means that we're less competitive as a jurisdiction, so I caution against it but realize we may have no choice.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Mr. Kingston.

Mr. Ste-Marie, you have two and a half minutes, please.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

Thank you, Madam Chair.

Mr. Kingston, you pointed out that electric vehicles contain many aluminum components. Because of tariffs, Quebec's aluminum exports are currently heading to Europe rather than to the United States. If I'm not mistaken, most of the United States' aluminum imports currently come from the Middle East, and several barges are reportedly being held up in the Strait of Hormuz, which could ultimately lead to an aluminum shortage in the United States.

Have you heard anything about this?

Are problems with manufacturing aluminum parts for automotive components currently having an impact on the United States?

Could there be a shortage in a few months if the conflict in Iran isn't resolved and the Strait of Hormuz remains closed, or is this not an issue for you at the moment?

[Brian Kingston]

There already have been shortages, and there's a risk of further shortages. There was also a fire at an aluminum facility in the United States, which did have an impact on the automotive supply chain. I think there is a recognition of the challenges here. Frankly, the Americans can't build more smelting capacity. The reason we have such a competitive sector here in Canada is that in Quebec you have hydroelectricity, which has created this phenomenal aluminum production ecosystem. There's no world in which the Americans build capacity. Most of their electricity is going to data centres right now, not aluminum smelters. They need Canada, and I think there's a recognition of that.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

Thank you.

You also talked about how critical, rare and strategic minerals give us a strategic advantage.

For the North American auto industry, is that advantage largely in connection with electric vehicles, or also with conventional vehicles?

[Brian Kingston]

It's largely for electric vehicles, simply because the critical minerals are mostly being used in the development of next-generation EV batteries. We do happen to have every single mineral that goes into the battery chemistries that are being used right now. The majority of that currently is being supplied, one way or another, by China. If it's not produced in China, it's processed in China. This strikes me as a significant opportunity for Canada if we can rapidly approve mining and build some processing capacity.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We have nine minutes until we vote, and we have two speakers, Mr. Chambers and Ms. Acan, remaining for this round.

[Adam Chambers, Conservative, Simcoe North, ON]

I'll keep under time for her.

[The Chair, Liberal, Judy Sgro]

Okay.

[Adam Chambers, Conservative, Simcoe North, ON]

Do you want to split it between the two of us?

[The Chair, Liberal, Judy Sgro]

Yes. We'll do three minutes for you and three minutes for Ms. Acan, and then we will suspend for the vote.

[Adam Chambers, Conservative, Simcoe North, ON]

Sure. Thank you.

Ms. Noble, very quickly, I noticed that the last times CFIA completed inspections for Argentina and Brazil were 2013 and 2017, respectively.

In your estimation, if there is a deal with Mercosur, do you have an expectation that those inspections would be updated?

[Cathy Jo Noble]

We would hope so. One of our main concerns is the disease reporting and the delay in it that comes out of some of the Mercosur countries, as well as the phytosanitary standards that are being met or not met, so the answer is yes.

[Adam Chambers, Conservative, Simcoe North, ON]

Thank you very much.

Mr. Kingston, in your opening statement, you suggested that the U.S. has a trade surplus in automobiles with Canada. Is that correct?

[Brian Kingston]

Yes, that's correct.

[Adam Chambers, Conservative, Simcoe North, ON]

You also mentioned that CUSMA is a new agreement, but from the U.S.'s perspective, if they have a trade surplus in automobiles, is there not an argument to be made that their arrangement is working for them?

[Brian Kingston]

Absolutely. Since this was implemented, they've run, on average, a $2.7-billion surplus with Canada; it is the only country in the world that the Americans run an auto surplus with, so this agreement is working for Canada and for America.

[Adam Chambers, Conservative, Simcoe North, ON]

We're told that the President personally focuses on the trade surplus and deficits, almost to the exclusion of any other fact.

[Brian Kingston]

That's correct.

[Adam Chambers, Conservative, Simcoe North, ON]

It seems bizarre to me that automobiles, as an irritant or a trade issue, have not been talked about with the Americans at any formal table. Does that concern you as someone in the industry?