Tariffs drive up cost of American-made vehicles, sparking buyer rush in Alberta

American-made cars are going to cost more—in some cases a lot more—but you can still get those vehicles without tariffs if you’re ready to move quickly.

Canadian tariffs on American-made vehicles and parts are starting to take a toll on car and motorcycle prices—and that has some Alberta dealers warning prospective buyers to move quickly.

While some dealers still have vehicles on lots that arrived before the tariffs took effect, prices on newly imported models are expected to jump dramatically in the weeks ahead.

Marty Giles, owner of Northstar Ford in Calgary, says vehicles like the F-150 pickup, which is Alberta’s best-selling model, could become significantly more expensive because of how and where they’re made.

“There’s 24 different countries that supply parts on an F-150,” Giles said.

“So I can just kind of simplify it. So let’s just say there’s an F-150 that’s built in the United States of America that’s worth $70,000 Canadian. … Now, when it comes to Canada, $60,000 of it will be taxed in reciprocal tariffs.”

The truck’s engine is made in Ontario, but the rest is assembled in the United States before it’s shipped back to Canada, making it subject to multiple layers of tariffs.

Giles says most dealerships only have a limited amount of tariff-free inventory on the lot or in transit.

“We probably have about 650 (vehicles), so we probably have two months till it comes in,” he said.

“I would suggest, if you’re thinking about doing something in the next 12 months, I would act now.”

Giles says consumers should consider buying extended warranties or pre-paid maintenance plans to avoid rising repair costs, as tariffs may also affect imported parts.

“It’s not just about the price of the vehicle. It’s also what’s going to happen to repairs and maintenance,” he said.

At a car show in Edmonton, prospective buyers said the new tariffs were influencing their decisions.

“When we’re purchasing a vehicle, if there’s tariffs or not, that’ll definitely help our decision-making for a new vehicle,” said Leah Shen.

“For me personally, I think if it’s made in Canada first, and then the cost is a secondary factor to it,” said Jiawei Shen.

Motorcycles are also feeling the impact. Indian Motorcycle of Calgary says Canadian counter-tariffs introduced in March led to an immediate halt in shipments from the U.S., leaving showrooms with limited stock.

“As the tariffs got introduced on March 4, Indian Motorcycle stopped shipping,” said general manager Vince Aiello.

“We literally have about four weeks of inventory left.”

Aiello says once they run out, any restocked models could see a price hike of “probably 25 to 30 per cent.”

“What happens after that’s going to be pretty scary. Could be a very difficult summer for us,” he said.

Used vehicle prices are expected to follow.

Waleed Assef, owner of Double L Motors, a used dealership in Calgary, says rising new vehicle prices will drive more demand for second-hand models, pushing up their prices, too.

“If people start flocking to buy used cars because of the pricing of the new cars, that’ll create a supply shortage, which will also increase the value of used cars,” Assef said.

He says the effects could be felt “across the board” as supply shrinks and demand grows.

“Just based on past experience, you know, supply and demand—like everything else—it’s just prices will go up when the supply goes down,” Assef said.

While not all makes are subject to tariffs—vehicles made in Canada, Mexico, Europe or Asia may escape the levies—Giles says many North American models will be affected, especially those assembled using global supply chains.

“F-series is the biggest, most impacted cross-border vehicle we sell because it comes from everywhere,” he said.