Canada’s auto sector ‘hangs in the balance’ as CUSMA review looms in 2026

By Jesse Cnockaert
The Hill Times
January 12, 2026
Category: Business & Politics
Region: Canada, United States

With the fate of North America’s free trade pact on the line, 2026 will be a significant year for some of Canada’s hardest-hit sectors in the trade war with the United States—including auto, steel, forestry and aluminum—as they advocate for Ottawa to do what’s necessary to preserve the deal, and to also help these sectors in the meantime by following through on domestic support measures. …Derek Nighbor, CEO of the Forest Products Association of Canada, said that Canada’s auto and forestry sectors are among the most highly-integrated with the US. While both sectors share this deep integration, Nighbor highlighted a critical distinction for forestry: unlike other industries, forestry facilities cannot be relocated to another country because the natural resource—the trees—remain in Canada. This comment comes amid heightened concerns regarding the 2026 CUSMA review and ongoing trade disputes, such as US softwood lumber tariffs. [to access the full story a Hill Times subscription is required]

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