Auto-parts manufacturer Linamar Corp. says it will significantly expand its operations in the United States by acquiring certain assets of Michigan-based Aludyne Inc. for US$300 million, but the move is not a result of U.S. President Donald Trump’s

tariffs on Canada’s auto sector. “We are acquiring Aludyne because it is a great business with solid casting technology that also enhances our machining operations in Canada as well as enhancing our ability to take on new opportunities for our customers looking to onshore work,” a company spokesperson said in an email. “It in no way detracts from our ability or intent to grow our Canadian … operations.”

The Guelph, Ont.-based company, which makes parts for vehicles as well as agriculture, industrial and medical devices, said its investment in Canada during 2025 has been the highest in its history, and that the deal will strengthen its ability to support its customers locally in a “dynamic” global trade environment.

“A diversified geographic footprint ensures resilience and flexibility in responding to evolving geopolitical and regulatory frameworks, while maintaining high standards of quality and delivery,” the company said in a statement on Thursday.

The Trump administration has placed a 25 per cent tariff on cars made outside the U.S., with an exception for those made with American components.

In a meeting with Prime Minister Mark Carney at the Oval Office earlier this week Trump, said the situation with Canada was tough because “we want to make our cars here.” At the same time, “we want Canada to do well, making cars. So, we are working on formulas and I think we will get there.”

Aludyne makes lightweight aluminum parts that help form a car’s structure. Linamar said the acquisition is “highly complementary” to its existing business and adds advanced capabilities in aluminum casting, precision machining and product design.

“Aludyne’s proprietary light metal casting technology offers great growth opportunity to our structural casting business and further strengthens our mobility business,” Linamar executive chair Linda Hasenfratz said in a statement.

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Chief executive Jim Jarrel said the deal also “reinforces supply chain stability” for its customers.

Linamar has more than 34,000 employees in 75 manufacturing facilities in 19 countries and generated sales of more than $10.5 billion in 2024, the company said.