Canadian vehicle and auto part exports faced more than US$380 million in tariffs in July, a sharp jump from previous months as U.S. levies kicked in.
A data analysis released last week by Anderson Economic Group showed US$1.1 billion in tariffs were imposed on assembled vehicles from Canada and Mexico in July, including more than US$311 million on Canadian autos alone.
That figure represents roughly 26 per cent of the total dutiable value of Canadian vehicle exports. Meanwhile, there were US$72 million in levies on auto parts from Canada, representing 36 per cent of their dutiable value.
In total, nearly US$1.4 billion in tariff duties were imposed on automakers and their suppliers for cars and auto parts from Canada and Mexico.
The group said July marked a dramatic shift from the previous three months when U.S. customs had been allowing automakers to claim exemptions for most vehicles under the Canada-United States-Mexico Agreement.
But it said that likely came to an end in July amid new tariff policies under the Trump administration.
The share of Canadian vehicles exempt from tariffs under the free-trade agreement plunged from 99 per cent to 36 per cent that month, according to the analysis.
The group said the sharp drop marks “a turning point” for North American automakers.
“The automakers made extensive use of temporary allowances that effectively allowed an exemption for the majority of both parts and vehicles through June,” said Anderson Economic Group principal and CEO Patrick Anderson in a statement.
“That changed in July for assembled vehicles, and we can expect that these costs will become embedded into the prices consumers are paying in the very near future.”
This report by The Canadian Press was first published Sept. 19, 2025.
