Canadian-Owned and Operated Since 1985April 14 2025,
Big changes are coming and they could hit your wallet hard. The U.S. has announced a 25% tariff on vehicles imported into Canada. That means cars coming across the border will soon cost significantly more. While these tariffs aren’t in effect just yet, they’re expected to roll out soon. Once they do, prices on both new and used vehicles could spike overnight. If you’ve been thinking about buying a vehicle, now is the time to act.
Let’s take a closer look at what’s going on—and why today might be your best shot at avoiding higher prices down the road.
What Are Vehicle Tariffs—and Why Should You Care?
A tariff is essentially a tax added to goods that cross borders. In this case, a 25% tariff will be applied to vehicles brought into Canada from the U.S. Since many cars in Canada are either built in or shipped from the U.S., this could affect a large portion of available inventory.
Tariffs Don’t Just Affect New Cars
Think this only impacts brand-new models? Think again. Used cars often flow through the same supply chains, and pricing is influenced by demand, availability, and the amount of inventory on the lot. If prices on new cars rise, demand for used ones could also shoot up, causing pre-owned vehicle prices to follow. Even if you’re not shopping for a brand-new ride, it still makes sense to buy now, before the trickle-down effect begins.
Prices Could Rise—Even If the Tariffs Aren’t Here Yet
Here’s something many people don’t realize: prices can start climbing even before the tariffs take effect. Why? Because people are rushing to buy vehicles before the added cost arrives. As demand goes up, dealers start to run low on popular models. Limited supply often leads to higher prices. This surge in buying is already happening across Canada. Smart shoppers are locking in their purchases now before availability shrinks and prices climb.
Delaying Could Cost You Thousands
Let’s break it down. A 25% increase on a $40,000 vehicle means an extra $10,000 out of your pocket. That’s a huge jump, and it doesn’t include additional taxes, fees, or financing interest over time. Waiting just a few weeks could mean the difference between getting a vehicle at today’s price or paying thousands more later.
A Rare Window of Opportunity
Right now, you still have access to a full selection of vehicles at pre-tariff pricing. This is a rare window of opportunity for buyers. Dealerships are actively encouraging customers to take advantage of current pricing before the changes hit. Whether you’re shopping for a brand-new vehicle or a pre-owned one, this could be your last chance to buy at today’s lower price.
The Bottom Line: Don’t Wait
The 25% U.S. tariff will have a ripple effect across the Canadian auto market. While it’s not here yet, it’s coming, and buyers are already feeling the pressure. If you’ve been on the fence about buying a vehicle, there’s never been a better time to take the leap. Prices are still stable, inventories are strong, and you can avoid paying more once the tariff takes hold. Don't wait until everyone else is scrambling for a deal. Shop now while the market is still on your side.
