{"id":36113,"date":"2026-05-07T20:00:10","date_gmt":"2026-05-07T20:00:10","guid":{"rendered":"https:\/\/www.europesays.com\/canada\/36113\/"},"modified":"2026-05-07T20:00:10","modified_gmt":"2026-05-07T20:00:10","slug":"tariffs-on-canadian-mexican-cars-cost-u-s-automakers-12-5-billion-last-year","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/canada\/36113\/","title":{"rendered":"Tariffs on Canadian, Mexican cars cost U.S. automakers $12.5-billion last year"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

A Canadian-built Toyota SUV is displayed at the Canadian International AutoShow in Toronto on Feb. 12.Sammy Kogan\/The Globe and Mail<\/p>\n

The Trump tariffs cost automakers in the United States US$12.5-billion on Canadian and Mexican cars and auto parts in 2025, according to Michigan-based consultancy Anderson Economic Group.<\/p>\n

The amount, tallied using U.S. Census Bureau data, includes US$3.5-billion on parts and US$9-billion on finished vehicles but does not include the amounts levied on cars imported from South Korea, Japan and Europe, said Anh Do, a senior analyst at Anderson Economic Group.<\/p>\n

\u201cThe total tariff burden borne by the American auto industry and its customers last year is much higher when you include tariffs on steel and aluminum, as well as imports from Europe and Asia,\u201d Mr. Do said. <\/p>\n

Auto tariffs on cars assembled in Canada or Mexico exceed US$1,600 per vehicle, Anderson Economic Group said in a report issued on Thursday. This does not include tariffs on the steel and aluminum used to make car components. <\/p>\n

Patrick Anderson, chief executive officer of Anderson Economic Group, said much of this cost has been absorbed by the manufacturers, suppliers and company shareholders with a smaller amount borne by car buyers. <\/p>\n

The tariff burden can be tough to measure, given it is disbursed throughout the supply chain and based on metal content, country of origin and date of manufacture, Mr. Anderson said by phone. <\/p>\n

U.S. President Donald Trump imposed 25-per-cent tariffs on the non-U.S. content of cars made in Canada and Mexico beginning in April, 2025. Auto parts are mostly exempt but face tariffs based on their non-North American content. <\/p>\n

The levies, imposed by Mr. Trump to fulfill a national security requirement, run counter to the U.S.-Mexico-Canada Agreement, which has for decades allowed free trade in cars and other goods among the countries. <\/p>\n

Mexico brings major trade mission to Canada as USMCA review approaches<\/a><\/p>\n

After April, 2025, the number of cars entering the U.S. from Canada and Mexico tariff free dropped to 20 per cent from 90 per cent. That number rose to about 40 per cent by the end of the year as some duties were relaxed, Anderson said. <\/p>\n

Canadian negotiators \u2013 and U.S. carmakers themselves \u2013 are pushing to have the Trump tariffs dropped when the agreement is reviewed this summer. <\/p>\n

Prime Minister Mark Carney on Wednesday called the tariffs \u201cunjustified.\u201d <\/p>\n

The tariff bill and a massive writedown on electric vehicles helped send Detroit-based Ford Motor Co. to a US$8.2-billion loss in 2025. <\/p>\n

General Motors Co.\u2019s 2025 profit fell by 55 per cent to US$2.7-billion, driven by EV charges and tariffs. <\/p>\n

Asked why U.S. automakers have not been vocal in their opposition to the tariffs, Mr. Anderson said, \u201cInitially the automakers were up in arms, but at this point they have chosen to be muted in their response.\u201d This is to avoid rankling the U.S. administration while trying to negotiate better tariff terms and, in some cases, refunds, he said.<\/p>\n

\u201cThere are lots of gray areas in the application of any tariff,\u201d he said. \u201cAnd for the auto industry, which relies on just-in-time inventory, holdups at the border are very expensive, so they have every incentive to keep trade moving smoothly back and forth across the border, which has largely been the situation for the U.S. and Canada for most of the last 50 years.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: A Canadian-built Toyota SUV is displayed at the Canadian International AutoShow in Toronto…\n","protected":false},"author":2,"featured_media":36114,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[164,224,238,214,212,239,17,211,230,231,227,213,210,235,171,234,143,222,249,215,216,229,225,226,219,240,220,244,245,247,242,246,94,243,217,142,233,113,232,241,223,236,237,228,221,218,248],"class_list":{"0":"post-36113","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-canada","8":"tag-alberta","9":"tag-arts-news","10":"tag-bc","11":"tag-breaking-news","12":"tag-breaking-news-video","13":"tag-british-columbia","14":"tag-canada","15":"tag-canada-news","16":"tag-canada-sports","17":"tag-canada-sports-news","18":"tag-canada-trafficcanada-weather","19":"tag-canadian-breaking-news","20":"tag-canadian-news","21":"tag-economy","22":"tag-education","23":"tag-environment","24":"tag-federal-government","25":"tag-foreign-news","26":"tag-globe-and-mail","27":"tag-globe-and-mail-breaking-news","28":"tag-globe-and-mail-canada-news","29":"tag-government","30":"tag-life-news","31":"tag-lifestyle","32":"tag-local-news","33":"tag-manitoba","34":"tag-national-news","35":"tag-new-brunswick","36":"tag-newfoundland-and-labrador","37":"tag-northwest-territories","38":"tag-nova-scotia","39":"tag-nunavut","40":"tag-ontario","41":"tag-pei","42":"tag-photos","43":"tag-political-news","44":"tag-political-opinion","45":"tag-politics","46":"tag-politics-news","47":"tag-quebec","48":"tag-sports-news","49":"tag-technology","50":"tag-travel","51":"tag-trudeau","52":"tag-us-news","53":"tag-world-news","54":"tag-yukon"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/36113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=36113"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/36113\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/36114"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=36113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=36113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=36113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}