Trump tariffs on Canadian autos, parts bump to US$380 million in July: report

Canadian car and auto part exports faced more than US$380 million in tariff duties in July, marking a sharp jump from previous months as U.S. tariffs kicked in. Vehicles are seen at the Mercedes-Benz Vehicle Preparation Center at the Port of Baltimore, where new Mercedes-Benz vehicle imports are processed before distribution to dealerships, Thursday, March 27, 2025, in Baltimore. (AP Photo/Stephanie Scarbrough)

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 shows 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, while the US$72 million in levies on auto parts from Canada represented 36 per cent of their dutiable value.

The group says 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 says that likely came to an end in July, as the share of Canadian vehicles exempt from tariffs under the free-trade agreement plunged from 99 per cent to 36 per cent.

Anderson Economic Group principal and chief executive Patrick Anderson says he expect these increased costs “will become embedded” into the prices paid by consumers in the near future.

This report by The Canadian Press was first published Sept. 19, 2025.