Trump's Canada tariffs take aim at America's favorite cars
President Donald Trump threatened 50% tariffs on Canadian vehicles and auto parts. Three of America's four best-selling vehicles are assembled there.
America's president, Donald Trump, has threatened tariffs of 50% on cars and vehicles imported from Canada, targeting some of the nation's most popular automotive choices. This move aims at the second-, third-, and fourth-best-selling vehicles in the United States which are built in Canadian assembly plants - Chevy Silverado, Toyota RAV4, and Honda CR-V.
These vehicles, along with Ford's F-Series, will bear the brunt of the tariff starting from January 1, 2027, in addition to imported steel and automotive parts. While automakers have the option to shift their production to US plants, it is not as straightforward as it seems. Each automaker - Toyota, Honda, Ford, and General Motors - also relies on US-based assembly plants for production of their high-volume models.
For instance, Honda has already moved a segment of its Canadian CR-V production scheduled for the US market to Ohio in 2025, while Toyota is planning to shift Tacoma production from Mexico to Texas by 2030. However, these moves do not affect the higher-volume vehicles. The White House defends the tariffs as an incentive for automakers to expand US production. Yet, the impact of these tariffs on vehicle prices and availability remains unclear.
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