Canadians face uncertainty and challenges, with the tariff chaos wrecking the industry. Handling these cross-border issues and inflated costs has become daunting for many individuals and dealerships. Rising prices, shrinking inventory, and repair cost spikes demand strategic planning. Therefore, shopping strategies to help reduce losses, capitalise on incentives, and assist dealerships in dodging penalties are crucial to finding good deals. Here are 22 cross-border car shopping strategies amid tariff chaos:
Monitor Tariff Announcements
The best shopping strategy amid the tariff chaos is to be informed and monitor the tariff announcements closely. Stay vigilant about tariff policy shifts, as they can alter vehicle costs overnight, offering great discounts or hikes. Whether news channels or digital resources, it is important to check daily for updates.
Act Quickly During Discounts
The tariffs have already been implemented and will continue to hike vehicle prices, which makes it inconvenient for customers looking to buy a new car. Acting quickly before more tariffs kick in and capitalising on sweet discounts, especially for high-demand models whose inventory is shrinking, can, therefore, be advantageous.
Focus on USMCA-Compliant Vehicles
The easiest way to stay safe during the tariff storm is to focus on USMCA-compliant vehicles. These vehicles from Canada or Mexico dodge the 25% U.S. tariffs, but compliance requires strict North American parts. Thus, verifying all the details and checking with the dealership before purchasing such cars is essential.
Research Domestic Production
Since goods from the U.S. are hiked due to Canada’s retaliatory tariffs and vice versa, consumers should rely on domestic production. Research is essential because some domestic vehicles may use many foreign parts. This strategy not only supports the factories and jobs but also reduces costs.
Compare Prices
To get the best deal amid the tariff chaos, customers must compare the prices of their desired vehicles either in person by visiting various dealerships for the best price, or using online tools. Be aware of price disparities between Canadian, U.S., or Mexican-made models caused by the exchange rates.
Use Dealer Incentives
To clear the previous vehicle stock, dealerships offer rare and attractive deals. These may include normal discounts, cash backs, extended warranties, or low-rate financing for vehicles. Moreover, certain brands, like Hyundai dealerships, have implemented a 60-day freeze to guarantee pre-tariff prices.
Opt for Used Cars
Consider buying a used car to avoid paying extra during the tariff storm. Tariffs are squeezing the new car supply, pushing used car prices up 8% since March 2025. This is especially useful during temporary needs or while customers wait and want to avoid paying extra for tariffed cars.
Understand Personal Exemption Limits
Amidst the trade war, Canadian shoppers face strict personal exemption rules for cross-border purchases, making declaring parts or vehicles from the U.S. to avoid fines necessary. To save money, plan your shopping strategy for cross-border parts and use exemptions wisely.
Avoid High-Mileage Used Vehicles
High-mileage used cars are not the best choice during the tariff chaos, as they increase repair costs. The U.S. parts tariffs significantly inflate maintenance costs for older vehicles each year. To avoid costly repairs, inspect transmission and engine health via certified mechanics.
Explore Financing Options
An excellent shopping strategy amidst the tariff chaos is to secure financing before interest rates and car prices go up. Customers should compare credit unions, online lenders, and other dealer financing options to find the best deal. Whether from big banks or credit unions, aim to secure the best rates.
Plan for Border Delays
Due to the tariffs, there have been supply chain disruptions and cross-border delays on parts. If ordered, pre-clear paperwork through brokers to speed things up and streamline part shipments. Since delays increase transport costs, contact dealerships and logistics companies to avoid extra expenses.
Avoid Peak Tariff Season
The safest shopping strategy is to wait and watch, hoping for the trade war to end quickly. Buyers should avoid the peak tariff season and buy new cars after removing the hikes and surges. Shop during quieter periods, like post-holiday periods or after temporary tariff pauses, to save money.
Use Foreign Trade Zones
Since foreign trade zones are considered outside the country’s customs territory, one can avoid the tariffs until they leave that zone. Ensure proper customs filings to avoid penalties and partner with foreign trade zone-based dealers. This can, in turn, lower costs on U.S.-sourced vehicles, enhancing the budget of Canadian buyers.
Check Visa Requirements
Dealerships and individuals dealing with automotive parts should check driver visas during the tariff chaos. U.S. B1 visa restrictions impact 30% of cross-border drivers, which can delay vehicle deliveries to Canada. Verify with transport companies to check the visas, as shipment delays may occur.
Account For Retaliatory Tariffs
Since Canada has imposed 25% retaliatory tariffs on U.S.-made vehicles, it is essential to avoid those. Still interested buyers must account for these and calculate the estimated costs with taxes. Budgeting for tariffs prevents financial shocks when crossing back or any hidden prices.
Register for U.S. Car Buying Trips
Canadians spending over 30 days in the U.S. for car shopping must register with CBP (as of March 2025) or face $400 fines. This is primarily for those who spend numerous days finding or importing cars from the United States. Nonetheless, it is a shopping strategy worth knowing to avoid legal issues and handle the tariff chaos.
Diversified Sourcing Options
Since common goods from the U.S. are taxed under Canada’s retaliatory tariffs, consumers should source from other options. To avoid tariffs, they can opt for South Korean, Asian, or Japanese-made vehicles or components. Verify supplier quality to avoid counterfeits, ensuring cost-effective purchases for Canadians.
Track Total Landed Costs
Since tariffs have brutally raised vehicle prices, it is important for consumers to calculate the total landed costs. A U.S.-sourced vehicle that was $30,000 may now be $40,000 due to the increased costs and duties. Do not fall for the prices listed on the dealership website; track the full cost.
Support Local Vehicles
Supporting local and domestic vehicles instead of depending on foreign cars can provide local alternatives that are significantly cheaper during the tariff chaos and offer numerous benefits and features. These avoid duties, support jobs, and offer better warranties for Canadian buyers who want to counter U.S. trade tensions.
Anticipate Repair Cost Increases
As the base price of each component increases due to the tariffs, so will the maintenance and repairs. Opt for Canadian-assembled cars with local parts to minimize repair costs or secure long-term parts contracts. By budgeting for higher maintenance, customers can avoid financial strain over the long run for repair costs.
Consider EV Options
The tariffs have increased the price of batteries for EVs, but there are other benefits attached to them. Government incentives and domestic electric vehicles can prove beneficial during the tariff chaos. Canadians should weigh upfront costs against long-term fuel savings, ensuring tariff-smart EV choices.
Consider Long-Term Plans
Customers should stay flexible during the tariff chaos instead of panicking or making irrational decisions. The tariffs, pauses, and sanctions create uncertainties. Therefore, buyers should avoid any purchases until the industry is stable. Businesses should pause fleet expansions, focusing on local inventory.
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