Update, February 3, 5:30 p.m.: The United States has announced that it will pause its tariffs against Canada following negotiations between President Trump and Prime Minister Trudeau on Monday. Canada made concessions to the U.S., promising to dedicate funds to border security and to list Mexican cartels as terrorist organizations. Much remains uncertain about this conflict as more development are sure to come, but consumers can breathe a sigh of relief for the time being.
The cost of buying a car looks set to rise again as the first salvos in a trade war between the United States and Canada come into focus. Over the weekend, Canada's federal government announced its response to its southern neighbour’s unprovoked 25 per cent tariff on most consumer goods.
Ottawa said that it plans to impose retaliatory tariffs on $155 billion worth of goods, starting with products like some groceries (peanut butter, coffee, orange juice) wines, spirits, beer, appliances, and even motorcycles. These are expected to go into effect on Tuesday, February 4.
The first round of tariffs is expected to hit $30 billion in goods from the U.S. and will be followed (after a 21-day public comment period) by a second set of tariffs on $125 billion worth of goods, including passenger vehicles, trucks, buses, recreational vehicles, and recreational boats, among others.
“This first set of countermeasures is about protecting — and supporting — Canada’s interests, workers, and industries,” said the Honourable Dominic LeBlanc, the minister of finance and intergovernmental affairs. “Working with provincial, territorial and industry partners, our singular focus is to get [U.S. tariffs] removed as quickly as possible. Until then, our response will be balanced and resolute.”
Minister LeBlanc also told the CBC that for the first phase of these tariffs, the government chose to target “consumer goods that we import from the United States for which there is a replacement” from other trading partners. However, both sets of tariffs will likely increase the price of targeted goods for Canadians and Americans.

Ottawa’s response follows the imposition of a 25 per cent tariff on virtually all products Canada exports to the U.S. The Trump administration claimed a lack of border security as its reasoning for the action, but there is little evidence to support its claims. In a statement, President Trump tied the tariffs to the flow of fentanyl crossing the border but by the U.S. Customs and Border Patrol's own estimates, less than 20 kg of the drug entered the U.S. through its northern border. That amounts to less than 0.01 per cent of the fentanyl entering the U.S. came from Canada last year.
Before launching its retaliatory measures, Ottawa attempted to address America’s alleged concerns but to no avail. In its response to the tariffs, Canada has argued that the U.S. is cutting off its nose to spite its face, and that its 25 per cent tax on goods stemming from its largest trading partner will harm consumers on both sides of the border.
While Prime Minister Trudeau has stated that the government is taking measures to protect Canadians, fears of an economic recession remain. Indeed, the TSX was down 600 points in early trading Monday and the Canadian dollar fell to its lowest level in more than 20 years, BNN Bloomberg reports. Moving forward, the price of consumer goods, including U.S.-made vehicles, will likely increase due to the trade dispute. A full list of vehicles made in the U.S., first compiled by our colleagues at AutoHebdo, can be found below:
Acura: Integra, MDX, RDX, TLX
BMW: X3, X4, X5, X6, X7, XM
Faraday Future: FF 91
Ford: Bronco, Escape, Expedition, Expedition MAX, Explorer, F-150, F-150 Lightning, Mustang, Ranger, Super Duty, Transit
Buick: Enclave
Cadillac: CT4, CT5, Escalade, Escalade IQ, Lyriq, XT4, XT5, XT6, Celestiq
Chevrolet: Colorado, Corvette, Express, Malibu, Silverado, Silverado EV, Suburban, Tahoe, Traverse
Dodge: Durango
Genesis: GV70 Électrifié
GMC: Acadia, Canyon, Hummer EV SUT, Hummer EV SUV, Savana, Sierra, Yukon, Yukon XL
Honda: Accord, Civic, CR-V, Odyssey, Passport, Pilot, Ridgeline
Hyundai: Santa Fe, Santa Cruz, Tucson
Infiniti: QX60
Jeep: Gladiator, Grand Cherokee, Wagoneer, Grand Wagoneer, Wrangler
Kia: Sorento, Sportage, Telluride
Lexus: ES, TX
Lincoln: Aviator, Corsair, Navigator
Lucid: Air, Gravity
Mazda: CX-50
Mercedes-Benz: EQE VUS, EQS VUS, GLE, GLS
Nissan: Altima, Frontier, Leaf, Murano, Pathfinder, Rogue
Polestar: 3
Ram: 1500
Rivian: R1S, R1T
Subaru: Ascent, Crosstrek, Outback
Tesla: Cybertruck, Model 3, Model S, Model X, Model Y
Toyota: Camry, Corolla, Corolla Cross, Highlander, RAV4 Hybride, Sequoia, Sienna, Tacoma, Tundra
Volkswagen: Atlas, Atlas Cross Sport, ID.4, ID. Buzz
Volvo: EX90, XC90