How will auto tariffs impact Canadians looking for a car?

With U.S. President Donald Trump saying he’s living ahead with 25 per cent tariffs on automobiles imported into the United States, those who sell cars in Edmonton say that will lead to an increase of people looking to buy used cars and maybe an increase in price.

“We’ve had customers that bought a vehicle two years ago, and the vehicle is worth just as much now, if not more,” said Jamal Kemaldean, the co-owner of Alberta Wholesale Motors.

Kemaldean sells used cars in Edmonton and says the price for a pre-owned vehicle went up during the pandemic with supply chain and production issues impacting both new and used vehicles, but those prices never went down. 

But with Trump announcing 25 per cent tariffs on vehicles imported into the United States, Kemaldean says that will drive up prices on new vehicles as production to the U.S. slows down, making it more economical to buy used.

“But with these new tariffs coming in, it’s actually going to go down because there’s an obscene amount of vehicles going over to the U.S., which will increase the demand of the used car market,” said Kemaldean.

While Prime Minister Mark Carney has promised counter-tariffs, American economists say the cost of tariffs ultimately gets paid by the American consumer. 

“So it may fall in the first instance on the American manufacturer, who buys the input, who may then pass it on to the consumer, or it is passed directly on to the retail community that is passed on to the consumer,” said an economist from CNN.

For those in the auto selling industry like Kemaldean, they’re left navigating the constantly changing talk on tariffs. 

“We don’t know what to expect. We think we have an idea, and then you never know.”