According to data from Statistics Canada, Canada imported more cars from Mexico than from the US in June. This was the first time that had happened in three decades. Trade tensions have impacted Canada’s purchases of automobiles from the US. President Donald Trump put a 25% tariff on foreign vehicle purchases, and Canada responded with a tariff on US-assembled vehicles, which has disrupted the flow of automobiles and parts across North America. Beyond changes in the automotive sector, several large Canadian corporations were in the news yesterday.

• Canada imported $1.08 billion worth of passenger vehicles from Mexico over the month of June. By comparison, Canada imported $950 million of passenger vehicles from the US. This was the first time in 30 years that the value of passenger vehicle imports in Canada from Mexico topped the US.
• In other news, Canadian company Gildan Activewear Inc. has agreed to purchase Hanesbrands Inc. for US$2.2 billion. Gildan believes this acquisition could boost revenue. Synergies between the two companies should help Gildan’s bottom line.
• At Air Canada, the union representing flight attendants and the airline have been unable to reach a new contract. The union issued a 72-hour strike notice. Air Canada has begun to suspend flights.
• The Bank of Canada (BoC) released its Summary of Deliberations yesterday, which showed the BoC considered a rate cut at its July meeting but held steady in response to low inflation and trade uncertainty.

Business continues to evolve in response to ongoing trade tensions with the US. Trade tensions have slowed Canada’s economic activity, but the slowdown hasn’t been as deep as once expected. Trade with Mexico seems to be on the radar for the Canadian government and business community. Prime Minister Mark Carney is trying to improve trade ties with Mexico, while Alberta Premier Danielle Smith visited Mexico to discuss energy projects and trade.

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