Auto part retailers in N.L. have been preparing for Trump's tariffs, but worry about lasting impacts

Elizabeth Whitten · CBC News

· Posted: Apr 08, 2025 4:30 AM EDT | Last Updated: 9 minutes ago

While the Ontario car assemblage mightiness beryllium the people of punishing U.S. tariffs, ripple effects are being felt successful the car parts retail satellite successful Newfoundland and Labrador.

Last week, U.S. tariffs connected Canada's car assemblage manufacture came into effect, prompting works shutdowns and layoffs. In response, Canada rolled retired 25 per cent tariffs connected non-Canada-United States-Mexico Agreement (CUSMA) compliant afloat assembled vehicles that are imported from the U.S.

Douglas Squires, president and CEO of Newfoundland-based Colonial Auto Parts, says the tariffs spell beyond targeting conscionable Canada arsenic astir car products are made successful different parts of the world, sent to the U.S. and past shipped to Canada.

Squires says he's been preparing for months for what a 2nd Trump presidency mightiness mean for his household business. Once Trump was elected, Squires says his institution began looking for suppliers extracurricular of the U.S. successful bid to "de-Americanize" wherever helium sources his parts.

However, immoderate items can't beryllium sourced extracurricular of the U.S., like paint, exhaust and mufflers.

"Other than that, astir different products tin beryllium sourced straight into Canada from the manufacturers, which is what we've been moving connected for, I guess, since the opening of December," Squires told CBC Radio's The St. John's Morning Show.

Taking measures

U.S. tariffs connected car parts coming from China volition person a large interaction connected the terms of imported goods sold successful Canada, says Squires, adding that he's already seen prices summation from six to 22 per cent.

Squires says helium has been stocking up connected immoderate parts for months, up of any price increases.

"If you bargain successful capable quantities, you tin get nonstop shipments to your spot of concern alternatively than having to bargain it from, accidental a middleman, oregon a warehouse successful either the United States oregon Canada," helium said.

But that means bigger orders that are being housed longer.

Other than COVID-19 factory shutdowns, helium says his institution has ne'er seen thing of this magnitude.

"We're a household owned and household operated backstage business. So obviously, you know, it's precise concerning due to the fact that of the information that we person our livelihood invested into it," helium said.

It's a akin communicative for Allan Brown, who owns McCormack's Service Centre and Towing successful Gander. He says he's anticipating a alteration successful pricing and availability implicit the adjacent fewer months. 

Brown told CBC News that automotive tariffs apical the effects that adjacent the cod moratorium had connected the industry.

"I deliberation this is going to be a challenge," helium said. "Vehicle prices are already higher. They're a batch higher than they were pre-COVID, and that includes reused vehicles."

With that successful mind, Brown is recommending that his customers enactment enactment into their existent vehicles alternatively of buying a caller 1 for the clip being, adjacent if the parts mightiness beryllium 25 per cent much costly successful astir cases. 

Brown, similar Squires successful St. John's, has been looking for alternate sources for parts wherever possible. He keeps an inventory and has section suppliers, but the Gander store proprietor says he's expecting that assets to dilatory down astatine immoderate point.

He expects radical successful the manufacture to acquisition Canadian — erstwhile they tin —  adjacent if the tariffs are relaxed oregon removed. 

"I've got a feeling astir radical are truthful disappointed and truthful disheartened by the mode that we've been treated and portrayed, that this volition continue, I think, agelong aft the tariffs are present and gone," Brown said.

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