Tariff FAQS
Automotive Tariffs
Worried about auto tariffs and rising prices?
You’re not alone. With increasing buzz about the proposed tariffs and their potential impact on the Canadian auto industry, many drivers are asking the same thing:
“Should I buy now or wait?”
Let’s break it down—because buying smart starts with being informed.
What Are Tariffs—And Why Should You Care?
A tariff is a tax placed on imported goods. For car buyers in Canada, this means:
Tariffs can raise your car price overnight—even if nothing else changes.
| U.S. Tariffs on Canadian Goods | Amount | Announced | Status |
|---|---|---|---|
| Tariff on automotive parts exported into the U.S. except parts that comply with CUSMA 25% Active – effective May 3, 2025 | 25% | Active – effective May 3, 2025 | |
| Tariff relief on certain imported automotive parts, only on vehicles with final assembly in the U.S. | 15% of value of vehicle for one year; 10% for second year | Active – effective April 29, 2025 | |
| Tariff on finished vehicles exported from Canada into the U.S. | 25% non-compliant with USMCA; 12.5% if vehicle contains 50% U.S. content per USMCA | March 26, 2025 | Active – effective April 3, 2025 |
| Tariff on automotive parts exported from Canada into the U.S. | 25% | March 26, 2025 | Announced – to take effect by May 3, 2025 |
| Tariffs on steel and aluminum products exported from Canada into the U.S. | 25% Cumulative 50% on steel; 35% on aluminum | March 11, 2025 | Active – effective March 12, 2025 |
| Tariffs on all goods exported from Canada into the U.S | 25% Goods non-compliant with USMCA; 10% Energy and potash non compliant with USMCA | March 4, 2025 | Active |
| Canadian Tariffs on U.S. Goods | Amount | Announced | Status |
|---|---|---|---|
| Temporary 6-month tariff relief on Canada’s surtax on passenger vehicles and certain trucks from the U.S. 25% Active – effective April 15, 2025 | 25% | Active – effective April 15, 2025 | |
| Tariff on finished vehicles not compliant with CUSMA, imported from the U.S. into Canada | 25% | April 3, 2025 | Active – effective April 9, 2025 |
| Phase 2 counter tariffs on $125 billion of goods and services | 25% | March 4, 2025 | On hold – consultation period conducted March 4 to April 2, 2025 |
| Counter tariffs on $29.8 billion in steel, aluminum and other products imported from the U.S. into Canada | 25% | March 12, 2025 | Active – effective March 13, 2025. List of goods subject to tariffs here. In place until the U.S. eliminates its tariffs against Canadian steel and aluminum products |
| Phase 1 counter tariffs on $30 billion in products imported from the U.S. into Canada | 25% | March 4, 2025 | Active – effective March 4, 2025. List of goods subject to tariffs here. In place until the U.S. eliminates its tariffs against Canadian products |
Frequently Asked Questions
The tariffs are expected to affect the supply chain of vehicles, potentially driving up costs for automakers in North America. Auto parts can be involved in several border crossings between Canada and the U.S. before a vehicle is completely assembled. This will result in increased production costs, which may be passed along to consumers, and potentially lead to higher car prices overall in both Canada and the U.S. Automakers are assessing their supply chains and manufacturing plants in light of the recent tariff announcements and fluid situation.
Currently, any in-stock new vehicle is not impacted by the tariffs.
Addison on Eglinton also has a wide selection of used vehicles that are also not subject to the Canadian counter tariffs. We encourage you to look at our wide selection of inventory. Please check back often, as our inventory changes daily.
Canadian counter tariffs are currently in effect. Tariffs will apply only to vehicles made in the US. Any in-stock new or used vehicle is not affected. In addition, any vehicle manufactured outside of the US is not subjected to tariffs.
Yes, tariffs may increase the cost of both leased and purchased vehicles. Any in-stock new or used vehicle is not affected.
No, vehicles already in inventory before tariff implementation will not have tariffs added to the price.
Trade-in values are influenced by overall market conditions. If vehicle prices rise due to tariffs, it could increase the value of your trade-in.
As of now, tariffs on auto parts are still being clarified by the Canadian government. If implemented, it could raise prices on parts, potentially affecting service and maintenance costs.
Tariffs will increase the final price of impacted models. The only way to protect yourself against the possibility of price increases is to choose to purchase an in-stock vehicle. If you currently have a vehicle on order, please contact your Addison on Eglinton Product Advisor for current status.
Pricing is generally tied to the delivery date and applicable automaker’s pricing at that time. Speak with a Addison on Eglinton Product Advisor to explore all available options.
At this time, there are no new government programs tied to tariffs. Provincial EV rebates and other incentives still apply for qualifying vehicles.