Experts say U.S. tariffs on Canadian auto imports will drive prices higher for both new and used cars.
Sean Mactavish, CEO of used-car marketplace Autozen, says prices are already rising on some used cars as sellers anticipate buyers looking for a better deal compared to a new vehicle.
U.S. President Donald Trump has enacted 25 per cent duties on imported vehicles, with temporary reprieve for some parts compliant with the Canada-U.S.-Mexico free trade agreement, and Canada has announced some retaliatory tariffs on automobiles coming in from the U.S.
Auto industry leaders have warned the tariffs will lead to plant shutdowns, and Stellantis was the first company to temporarily pause its plant in Windsor, Ont.
Baris Akyurek, vice-president of insights and intelligence at Autotrader.ca, says an increase in new car prices is inevitable.
Mactavish says consumers are likely to trade down to used cars or even delay major vehicle purchases as they grapple with uncertainty and higher prices.
This report by The Canadian Press was first published April 4, 2025.
