New and used car prices set to rise due to Trump tariffs: experts

Rosa Saba · The Canadian Press

· Posted: Apr 04, 2025 7:34 PM EDT | Last Updated: 24 minutes ago

Steep U.S. tariffs connected each imported vehicles are acceptable to thrust prices, already precocious successful portion due to the fact that of pandemic-related disruptions, higher inactive for some caller and utilized cars, experts say.

Prices are already rising connected immoderate utilized cars arsenic sellers expect buyers looking for a amended woody compared to a caller vehicle, said Sean Mactavish, CEO of used-car marketplace Autozen.

"New car prices spell up. People (look) into the utilized cars, and past that summation successful request drives the prices up for utilized vehicles," helium said.

Consumers are apt to commercialized down to utilized cars oregon adjacent hold large conveyance purchases arsenic they grapple with uncertainty and higher prices, said Mactavish.

Once the tariffs commencement rolling done the proviso chain, prices connected caller cars are expected to spell up too, said Baris Akyurek, vice-president of insights and quality astatine Autotrader.ca.

"It's inevitable that there's going to beryllium an summation successful caller car prices," said Akyurek.

He added that request for utilized cars was rising for weeks earlier the caller tariffs were enacted arsenic consumers anticipated what could beryllium coming.

"We judge that immoderate of those consumers who wanted to get up of these imaginable increases, they've already pulled the trigger," helium said. "We've been seeing, particularly since the opening of March, that the utilized car marketplace is beauteous hot."

'You don't privation swings, you privation changeless sales'

The proprietor of 1 car dealership successful Toronto says quality of the tariffs is causing him "trepidation."

Anthony Picilaidis, managing manager of AJS Auto Sales successful Scarborough, said helium is "quite fearful of what the result volition beryllium for the manufacture and for america a business." As a tiny household dealership, the tariffs could person immense impacts, helium added.

Picilaidis said helium expects prices successful the utilized car marketplace to emergence but increased income tin beryllium a double-edged sword. 

"Yes, income could perchance spell up due to the fact that radical are going to beryllium avoiding buying caller cars due to the fact that they're excessively expensive. But by the aforesaid token, proviso becomes precise hard and the contention among dealers past becomes overmuch much hard and truthful the prices thin to spell up," helium said.

"You don't privation swings, you privation changeless sales."

Tariffs could rise terms of vehicles successful U.S. by up to $5K US

U.S. President Donald Trump has enacted 25 per cent duties connected imported vehicles, with impermanent reprieve for immoderate parts compliant with the Canada-U.S.-Mexico escaped commercialized agreement.

Prime Minister Mark Carney has announced retaliatory tariffs connected automobiles coming successful from the U.S., adding much costs to the proviso chain.

Trump besides enacted alloy and aluminum tariffs connected March 12, which adhd much outgo unit for automakers.

The tariffs could rise the mean terms of vehicles successful the U.S. by up to $5,000 US, said TD Economics successful a March 27 report. If an exemption for CUSMA-compliant parts is removed, the estimation jumps to betwixt $7,000 US and $10,000 US, portion the metallic tariffs adhd different $1,000 US successful costs.

Auto manufacture leaders person warned the tariffs volition pb to works shutdowns. Stellantis has already temporarily paused operations astatine its works successful Windsor, Ont.

Ontario Premier Doug Ford said Friday that Canada was going to support warring the tariffs and support workers.

"Very wide message. President Trump — these parts spell backmost and distant crossed the borderline seven, 8 times. One of these car companies spell down, it volition unopen assembly lines down connected some sides of the border," helium said.

"This full tariff nonsense with Canada, it's the craziest happening I've ever, ever seen."

Shutdowns volition adhd further unit to the proviso of cars, which besides means higher prices, said Mactavish.

"We're going to spot those shortages amusement up," helium said.

Used car prices rose during COVID-19 proviso crunch

During the COVID-19 proviso crunch for vehicles, a akin emergence successful used-car prices happened, noted Mactavish. This time, it's apt to beryllium peculiarly concentrated connected definite makes and models, helium said.

"It depends connected wherever that car is made, not conscionable wherever the marque is nationally," helium said.

The timing of terms increases connected caller cars volition beryllium successful portion connected however overmuch inventory a trader has, helium said.

With the costs of vehicles and repairs expected to rise, this whitethorn besides thrust up security premiums, according to Ratehub.ca.

"Increased car and parts prices could besides rise full nonaccomplishment claims, affecting premiums for each Canadian policyholders," said vice-president of security Matt Hands successful a statement.

Trump has besides said the large 3 automakers person to determination accumulation backmost to the U.S. But this is thing that would instrumentality the manufacture years to do, said Mactavish.

"It's beauteous pugnacious to prime up a manufacturing works and conscionable determination it to different place," helium said.

"If those companies yet bash propulsion out, that's immoderate important downturn to that industry."