Canadian Automotive Retail Update - Tariffs

OpenRoad Customer FAQs
April 11, 2025 UPDATE
On April 3, 2025, a 25% U.S. tariff took effect on all finished vehicles exported to the United States. The original announcement was made on March 26, 2025 through a U.S. proclamation. Further U.S. tariffs on automotive parts will be clarified by May 3, 2025..
Canada responded to the U.S. move by activating countermeasures on April 9, 2025 applied as a 25% retaliatory tariff on finished American-made vehicles entering Canada. The tariff applies only to goods originating from the U.S., as outlined in the country of origin regulations.
Some exemptions apply. Canada’s automotive tariffs on U.S. finished vehicles are not charged on:
The situation is developing.
U.S. Tariffs on Canadian Goods | Amount | Announced | Status |
---|---|---|---|
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 |
---|---|---|---|
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 |
OpenRoad is providing helpful information on automotive retail and tariffs during these uncertain times. Jump to these sections for quick access:
Vehicle Inventory Availability
Canadian Company
Q. Is OpenRoad a Canadian company?
Yes, our original company was founded 47 years ago in Richmond, B.C. This is our 25th anniversary as OpenRoad Group, and we remain headquartered in B.C. since 1978. We are fully Canadian-owned and -operated, with over 25 dealerships and over 2,000 Canadian employees in B.C. and Ontario. We own and operate four additional locations in Washington state.
Canadian-Assembled Vehicles
Q. How can I recognize Canadian-assembled vehicles for sale?
We are helping shoppers to easily identify Canadian-assembled vehicles. OpenRoad’s online inventory shows a maple leaf on all new inventory and used vehicles that are assembled in Canada. See OpenRoad's full inventory here.
Q. What is the difference between “Made in Canada” and “Product of Canada” labels?
“Made in Canada” refers specifically to vehicles assembled in Canada, while “Product of Canada” is a broader term that also includes Canadian-made and manufactured parts. Both terms highlight Canada’s significant automotive industry, which produces vehicles, trucks, buses, and auto parts.
For other products such as groceries and appliances, read the guidelines for “Made in Canada” versus “Product of Canada.”
Q. Are there tariffs on vehicles made in Asia and Europe?
In Canada, there are no changes currently to regular import duties, and any recent tariffs do not apply to vehicles made in Asia and Europe.
Q. How can I find out where my vehicle is made?
Visit OpenRoad Auto Group. Shoppers can find the country-of-origin details for new and used vehicles available on each vehicle’s inventory page. We provide shoppers with information to make their own purchasing decisions.
For your current vehicle, your VIN number identifies many details, including country of origin. If your VIN number has “2” at the beginning, your vehicle has been assembled in Canada. The World Manufacturer Identifier assigns a WMI world code as an international standard. The list of world codes is here.
Vehicle Prices
Q. What are the new U.S. tariffs on Canadian goods, and when do they take effect?
See the update on April 11, 2025 before the FAQs.
Q. How will tariffs affect car prices?
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.
Q. I need to buy a car. What are my options to mitigate the impact of potentially higher car prices?
OpenRoad has a strong supply of new vehicles now before any potential impact of tariffs on car prices. See our new vehicle inventory.
OpenRoad also has a wide selection of pre-owned vehicles that are not subject to the U.S. government tariffs. We encourage you to look at our pre-owned vehicle inventory. Please check back often, as our inventory changes daily.
Q. Are Canadian-assembled vehicles subject to these tariffs?
See the update on April 11, 2025.
New Canadian-assembled vehicles exported to the U.S. are subject to U.S. tariffs effective April 3, 2025. This could impact the competitiveness of Canadian vehicles in the U.S. market that may result in reduced production at the vehicle manufacturing plants in Canada.
Effective April 9, 2025, Canada enacted countermeasures against the U.S. tariff on Canadian-made vehicles. Canada has imposed a 25% tariff on vehicles imported from the U.S. into Canada. The tariff applies to vehicles that are non-compliant with CUSMA. There are tariff exemptions for vehicles and auto parts that do comply with CUSMA. Vehicles made in Mexico are also exempt.
For Canadian consumers, this may mean adjusted car prices and reduced selection overall. We are working closely with each of our manufacturers.
Q. Will I avoid any tariff repercussions if I purchase my vehicle before the tariffs go into effect?
Any in-stock new vehicles purchased before the tariffs go into effect will not be affected. In addition, all in-stock new vehicles manufactured outside of the United States and any in-stock used vehicles will not be subject to tariffs.
Q. If I pre-order a new vehicle, will there be any changes to the vehicle’s purchase price at delivery?
You have options. To pre-order and customize a new vehicle, we offer a simple online process. A pre-order requires a deposit. The final price is always determined by several factors, including MSRP, mandatory and dealership fees, and market conditions. You will always know the purchase price well in advance to make the best decision for you and your family.
Tariffs add uncertainty. For peace of mind, you can choose to purchase an in-stock vehicle by visiting our current inventory. You may also read about our OpenRoad TruePrice for used inventory, where we offer one price at true market value without the stress of haggling.
Vehicle Inventory Availability
Q. Will the tariffs impact the availability of vehicles at OpenRoad dealerships in Canada?
Potential supply chain disruptions and increased production costs could affect vehicle availability in dealerships across Canada. Automakers may adjust their production of new vehicles, possibly leading to reduced selection or longer wait times for certain models. Please contact your OpenRoad Product Advisor to get the most up-to-date inventory levels and wait times, as applicable.
Q. What brands will be most affected by the tariffs?
Many automakers operate several assembly plants across North America, with each facility focused on producing specific models. Please contact your OpenRoad Product Advisor for more information on where your specific model is assembled.
Q. Will my new car arrive on time?
There may be supply chain disruptions that could affect the estimated arrival of a new vehicle. Unless we notify you, please expect your new vehicle as scheduled. We welcome you to reconfirm your delivery appointment with your OpenRoad Product Advisor or Delivery Specialist just to make sure.
Used vehicles are not affected.
General
Q. What is a tariff and who pays it?
A tariff is a tax on products coming from another country. This restricts trade and limits the free flow of goods between countries. A tariff is set by an importing country as a percentage of the import’s value.
Domestic companies that import products into the country must pay a tariff upfront. For example, U.S. companies must pay the recently announced tariffs on Canadian products that they import into the United States. Similarly, Canadian companies must pay Canadian tariff amounts that our country has placed on U.S. imports, in response to the recent U.S. tariffs on Canadian goods. These extra charges are often passed onto consumers.
The parts and materials that are used to make an automobile can cross North American borders many times, so tariffs may disrupt production at manufacturing plants. OpenRoad is coordinating our response with the 20 automakers that we represent in Canada.
Q. Other than purchasing a vehicle with cash, does OpenRoad offer other options?
Yes. OpenRoad offers robust financing and leasing options, for all types of budgets. We have our own in-house leasing options for pre-owned vehicles through OpenRoad Leasing. Find out more here.
Q. As a Canadian company, will you stop selling U.S.-made vehicles until the tariffs end?
OpenRoad believes in offering choice to our customers. We are an authorized retailer for 20 car brands, where our automakers supply vehicles globally. We do not control the country of origin for the vehicles that our OEMs provide for us to sell. We continue to work closely with our manufacturing partners to provide the best inventory selection to match consumer tastes.
Q. How long are these tariffs expected to last?
The duration of the tariffs is uncertain and depends on the ongoing relations between the U.S., Canada, Mexico, and other trading partners. Governments are at various stages of discussions, but currently there is no definitive timeline established to permanently remove the recent tariffs.
Q. Where can I find more information and updates on this situation?
For the latest information, please visit our FAQs often.