U.S. President Donald Trump’s global tariffs on steel and aluminum imports could drive up Canadian auto theft rates, insurance industry investigators warn.
New, tougher American tariffs could push Canadian criminals to steal more vehicles to mine for parts or resale, according to a statement from Équité Association, an insurance industry organization that focuses on insurance fraud and crime.
It’s not clear exactly what those tariffs might be or how long they could last, but it is expected they will be a motivator for Canadian thieves, insurance experts predict.
“Tariffs are hitting the automotive industry hard and rising prices for parts could make vehicles more attractive to thieves,” Daniel Ivans, a Rates.ca insurance expert and licensed insurance broker, said.
Things will likely be particularly pronounced in the GTA, since there are plenty of vehicles to steal and roadway like Highway 401 to transport them, Ivans said.
“A place like Toronto is a lot more likely to be exposed than a place in Saskatchewan,” Ivans said.
Even if Canadian-made auto parts are spared entirely from tariffs, American duties against imported steel and aluminum will likely impact prices — and theft — in Canada, experts said.
“The cost itself ripples through the supply chain,” Ivans said.
He said average consumers will likely see this reflected in their insurance premiums.
Such costs can be reduced after market devices like engine immobilizers, ignition cut-offs and TAG anti theft systems that help track vehicles, Ivans said.
“The continually shifting landscape of auto theft means that not only do consumers need to be aware of ways to help keep their vehicles safe, they also should pay attention to their insurance policies,” Ivans said. “Insurers are continually updating their lists of most-stolen vehicles, and the vehicles on these lists will vary by insurer.”
His warning about an increase in theft comes after reports earlier this year that auto theft rates had dropped 18.6 per cent across Canada.
Sport utility vehicles remained the favourite target for thieves, followed by trucks, according to the annual report from Équité Association, an insurance fraud prevention group.
The Équité Association earlier this year concluded that Canadian organized crime groups are still profiting from auto theft, but not nearly as much as a few years ago.
The report said that auto theft in Ontario dropped 17.4 per cent — compared to an 18.6 per cent decline nationally — from 2023 to 2024.
The Équité report from earlier this year credited an announcement by the federal government in December 2024 to invest $1.3-billion to bolster security at the border, in an effort to combat organized crime and disrupt the fentanyl trade.
The boost in auto theft in the 2020s pushed insurance companies to add surcharges of up to $1,500 or raise prices for vehicles determined to be at high risk of theft.
That’s often offset by discounts for consumers who install anti-theft devices such as steering wheel locks or tracking devices.
Auto theft insurance claims topped more than $1 billion in 2023 and 2024, after auto theft claims averaged $556 million annually between 2018 and 2021, according to newly released data from the Insurance Bureau of Canada.
