Canadian Car Dealers Await Price Hikes as Tariff Dispute Simmers
The general manager at a car dealership in Dartmouth, N.S., believes that within the next 90 days, the cost of new cars will rise due to the continuing trade dispute with the U.S.
On Thursday, a 25 percent tariff came into force for all imported vehicles and automotive components coming into the United States. As a result, Canada introduced a retaliatory tariff of 25 percent on everything originating from America that isn’t Canadian within U.S. automobiles crossing northward, as well as those American cars failing to meet the standards set forth under the new Canada–United States–Mexico Agreement (CUSMA).
"Every economist globally understands that input costs are escalating. The automotive sector operates with high stakes and slim margins. Consequently, every manufacturer must implement price increases," stated George MacPhee in a Friday interview with Global News.
He mentioned that 75 percent of the vehicles at his MacPhee Ford dealership originate from below the border, yet most car components are sourced domestically. This has left dealerships confused as they try to assess the effects.
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What happens when components and vehicle parts from various regions around the globe are put together during assembly in the U.S.?
MacPhee indicates that it won't take much time for the tariff effects to reach his showroom models.
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