Scott Vickers had his eye on a vintage 1996 Ford Bronco for the classic showroom of his Summit Ford dealership.
The only issue? The car was in the U.S.
Because of that, the owner of the Etobicoke dealership would have had to shell out $8,750 more due to Ottawa’s 25 per cent tariff on American-made cars that are non-CUSMA compliant — itself a response to U.S. President Donald Trump’s own global auto trade penalties.
As a result, the Bronco, which Vickers figured he could have listed for $45,000, would now be closer to $50,000, making it “impossible for me to do the deal.”
As the trade war between Canada and the U.S. continues — albeit with a narrow focus on steel, aluminum and auto industries — Vickers said the case of the Ford Bronco shows the costs businesses have had to shoulder, whether that be from tariffs and counter tariffs on either side of the border.
While Vickers understands why Ottawa would want to target cars recently made in the U.S., he “thinks it’s wrong” to place “irresponsible” trade penalties on vehicles made decades ago.
“I’m not putting anyone in Canada in jeopardy,” he said, adding that he is helping the economy by hiring people to recondition and sell these older cars.
He also pointed to the tax revenues the government is missing out on from his business. According to Vickers’ estimations, his original purchase of the 1996 Ford Bronco, along with the reconditioning and reselling of the vehicle, would have brought in more than $10,000 in taxes for the federal government.
“It’s just nuts that they’re leaving that money on the table.”
For it’s part, Ottawa’s department of finance described its counter tariffs as a “robust and measured response to the unilateral, unjustified tariffs imposed by the U.S.,” in an email to the Star.
“Once the U.S. removes its tariffs, Canada would do the same,” a department spokesperson said.
The spokesperson added that it conducted “extensive” consultations over several months to identify appropriate imports for retaliatory measures, and that there is a remission process to consider requests for “exceptional relief” from Ottawa’s counter tariffs.
Last week, federal finance minister François-Philippe Champagne announced that automakers will be allowed to import a certain number of U.S.-assembled vehicles free of the counter-tariffs, although he didn’t reveal each company’s quota for the exemption.
He also said the quota could drop if there are reductions in their Canadian production or investment.
Even if Vickers wanted to source the cars for his showroom domestically, he said there almost all of the classic cars on the market come from the States.
“We just don’t have the weather here to help these cars survive over the years,” said Vickers, “so we have to source the majority of our vehicles from the U.S.”
Larry Ferg, who appraises classic cars through his business, Toronto Specialty Cars, also said many of these vehicles are bought from American sellers.
He got his two most recent cars from America — although this was long before any talk of tariffs.
According to Ferg, the demand for these cars is mostly driven by nostalgia.
“They’re very classic looking,” Ferg said, “but not as efficient as a newer model.”
Vickers too said there is a “big market” for classic cars at his dealership, particularly for muscle cars from the 1960s and 1970s.
But with Ottawa’s tariffs targeting U.S.-made vehicles, the car salesman said it would be difficult to continue this part of his business.
“My supply chain has been cut off at the knees,” he said. “I’m basically being handcuffed.”
With files from Josh Rubin
