Canada’s automotive landscape is about to change significantly due to the recent tariffs imposed by the United States. With retaliatory tariffs imposed by Canada, the price of many vehicles will significantly increase. Import costs, supply chain disruptions, and the reliance on tariffed components trigger this. From trucks to SUVs and EVs, vehicles reliant on the U.S. assembly are most vulnerable. Here are 20 cars that could see the biggest price increases in Canada due to tariffs.
Ford F-150
America’s best-selling truck, the Ford F-150, could see the biggest price increase in Canada due to tariffs. This vehicle is primarily manufactured in the U.S., with engines and transmissions often sourced from Canada and Mexico. Canada’s 25% tariff on U.S.-origin vehicles could increase the price of this vehicle up to $9,000.
Chevrolet Silverado
The Chevrolet Silverado is another heavy-duty truck built in the United States. Its biggest increase stems from the high volume of U.S. exports to Canada, which amplifies tariff impact. This vehicle’s price could be increased by $10,000, as GM’s dependence on Mexican-sourced wiring may also be affected.
Toyota RAV4
The Toyota RAV4 is a fascinating hybrid vehicle suitable for all occasions. This car could witness some of the biggest price increases as the electronics are sourced from the U.S. Other factors include Toyota’s export focus, with Canadian plants shipping to the U.S., triggering U.S. 25% duties.
Honda CR-V
The Honda CR-V is built in both the U.S. and Canada, using numerous U.S.-sourced parts like the transmission. Due to the tariffs, Honda’s reliance on Ohio-made engines has become costlier, while steel tariffs also affect chassis costs. Since most consumers prefer all-wheel drive models, this could increase the price further as it calls for more imports.
Chrysler Pacifica
Chrysler Pacifica’s price could increase by $5,000-$8,000 due to its reliance on U.S. batteries and electronics. Rising energy costs for plant operations amid trade uncertainty add pressure. Its biggest potential increase lies in this supply chain exposure, while the small minivan niche market limits economies of scale.
Ram 1500
The Ram 1500 is a heavy-duty beast capable of long hauls and towing tasks. Stellantis’s focus on U.S. production over Canadian alternatives is why this vehicle could see a price hike. The imported tech would be more expensive since this vehicle uses premium, durable tires.
GMC Sierra
The price of the GMC Sierra, a major sales source, is likely to increase due to Canada’s 25% tariff on U.S.-built models. There will be higher manufacturing costs, whether reliance on tariffed Canadian steel for frames or GM’s shift to pricier U.S.-made luxury trim.
Audi Q5
One of the smoothest and most agile vehicles ever, the Audi Q5 stands out with its Quattro all-wheel drive. Its premium German engineering, requiring costly European parts, is now tangled in the trade war. Moreover, since the vehicle is made in Mexico, a potential 25% U.S. tariff on Mexican vehicles is bound to increase import prices.
BMW 3 Series
Known for its performance and cutting-edge technology, the BMW 3 Series could see the biggest price increase in Canada. BMW’s reliance on German-sourced engines is now pricier amid global trade tensions. The tariffs could lead to supply chain inefficiencies, especially for manufacturers like BMW on a large scale.
Ford Mustang Mach-E
The green and electric variant of the fierce Mustang, the Ford Mustang Mach-E, could witness a huge price spike. Since this vehicle is produced in Mexico, the U.S.’s 25% tariff on imports from Mexico will affect it. Other factors include Ford’s investment in EV tech, which is raising base costs.
Chevrolet Equinox
With Canada implementing retaliatory tariffs on the United States, the price of the Chevrolet Equinox could increase. While the Equinox is produced in Mexico, specific components are sourced from the United States. Tariffs on steel and aluminum will also raise Equinox’s manufacturing costs.
Honda Civic
Reports suggest that due to U.S. tariffs on Mexican imports, Honda has decided to produce the next-generation Civic Hybrid in Indiana. While this reduces the cost for U.S. consumers, the same cannot be said for Canadian consumers. This relocation also results in delayed production, which can disrupt supply chains.
Toyota Corolla
The Toyota Corolla could rise by $6,000 due to Canada’s 25% tariff on U.S.-assembled models. These tariffs increase the cost of components used in manufacturing vehicles, including a hike in Japanese-sourced hybrid components. Canadian demand for eco-friendly trims, which rely on tariffed batteries, could affect the conventional Corolla.
Volkswagen Tiguan
The Volkswagen Tiguan has gained immense popularity in Canada due to its compact nature and exhilarating performance. The recent tariff escalations on imported parts will affect the price of this vehicle. Since it is manufactured in Mexico and uses some parts sourced from Europe, its entry into Canada will be expensive.
Jeep Grand Cherokee
The Jeep Grand Cherokee is a popular off-road vehicle that can tackle any terrain. It is suitable for any adventure. This vehicle is produced in the U.S. and will increase due to the ongoing tariff war. Other factors include its reliance on Mexican-sourced components, which affect U.S.-Mexico trade differences.
Mazda CX-5
The Mazda CX-5 could justify the increased prices due to its popularity in Canada. With some units from Mexico and others from Japan, the trade war has taken a toll on it. Whether it is the import reliance, Japanese-sourced engines, or U.S. steel chassis, it may face a price hike in Canada.
Nissan Rogue
The beacon of reliability, the Nissan Rogue is Nissan’s best-selling nameplate in Canada. This vehicle is assembled in the U.S. with Mexican components and will see the most significant price increases in Canada due to 25% tariffs. Nissan’s reliance on tariffed Asian electronics and higher U.S. labor costs are other reasons.
Hyundai Tucson
The Hyundai Tucson is unique in design and technology. However, because it was manufactured in both the United States and South Korea, it could face a $5,000 price hike. Apart from the tariffed raw materials, South Korean parts like batteries can also face price hikes.
Kia Sportage
The tariffs will hit the Kia Sportage, which offers the ideal blend of performance and style. However, with limited Canadian stock and its factory in the United States, it could see significant price increases. Plans to reduce reliance on South Korean transmissions will increase their price in Canada due to supply constraints.
Tesla Model Y
A futuristic electric vehicle, Tesla might face price hikes in Canada for numerous reasons. Firstly, it is manufactured in the U.S. and is subject to the tariffs imposed on Canada. Tesla has faced several boycott challenges and has been excluded from certain Canadian electric vehicle rebate programs.
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