How Will Tariffs Affect the Canadian Car Market?
How Will Tariffs Affect the Canadian Car Market?
Posted on May 7, 2025
Buying a new car in Canada just got a little trickier. Starting April 9, 2025, the Government of Canada placed new tariffs on vehicles made in the United States. These tariffs are up to 25%. But they are not as simple as they sound. The extra fees only apply to parts that are not made in Canada or Mexico. Even cars that follow the CUSMA rules could still get hit. That is because most cars made in the U.S. use a lot of parts from other countries.
What This Means for Prices
Sadly, it means car prices are going up. A lot. On average, a new car in Canada costs about $67,259. After the tariffs, buyers could be paying around $14,292 more for the same car. That extra amount could make monthly payments much harder to manage. Even if the full 25% tariff is not applied to every car, the impact will still be felt. It might not be enough to stop people from buying, but it could change what they choose.
The Local Impact in Edmonton
For car lovers in Edmonton, the effects will be noticeable. Many popular models come from U.S. factories. Whether it is a pickup truck ready for Alberta winters or a stylish SUV perfect for city drives, prices could be higher. This change could push more people to look at models built closer to home. Canadian-made and Mexican-made vehicles could become a smarter choice for many. It could also shine a light on brands that have factories right here in Canada.
What About MINI Vehicles?
At MINI Edmonton, we know buying a car is a big decision. Luckily, MINI models are built in Europe, not in the U.S. That means they are not directly affected by these new tariffs. It gives shoppers a chance to avoid the price hikes seen in many U.S.-made brands. Plus, with MINI’s efficient engines, smart tech, and fun driving feel, they stay a great option for Edmonton roads, no matter the season.
Will These Tariffs Stay Forever?
No one knows yet. Canada’s government says these tariffs will stay until the U.S. removes its own tariffs against our auto sector. Talks are happening. But trade deals can take time. Until then, shoppers should plan for higher prices on many U.S.-made vehicles. At the same time, new programs are being built to support Canadian auto workers and businesses.
Your Next Step Starts Here
If you are thinking about a new vehicle, there has never been a better time to explore your options. Visit MINI Edmonton to find a car that fits your style, your needs, and your budget without worrying about new tariffs. Our team is ready to help you drive away with confidence. Book a test drive today and feel the MINI difference!