The Global Automakers of Canada said vehicle production and sales in Canada would be hit by retaliatory trade tariffs by the United States.

"If we can move forward with very modest sales declines, the industry will still be in a very healthy position. Currently, the largest threat to modest sales declines is possible tariff action on autos by the Trump administration and the retaliatory measures that are likely to follow," David Adams, president of the industry body, said in a statement.

However, Ford Motor Co said its total vehicle sales in Canada rose 0.9 percent in July and remained the top seller with 27,918 vehicles sold.

The Dearborn, Michigan-based carmaker said the F-150 continued to be its top seller in Canada, seeing a 2 percent increase in sales compared with the previous year.

General Motors Co sales fell 2.4 percent to 25,226 vehicles, with Cadillac being the only brand to have higher sales.

Detroit-based GM's Chevrolet brand, which makes up more than half of the company's sales, sold 5.3 percent fewer automobiles.

(Reporting by Karan Nagarkatti in Bengaluru)