Article on the effect of auto tariffs on Canada.

[IndyIan]

https://driving.ca/column/stephen-beatty-tariff-canada-automotive-trade-advantage-impact

Quite a complex issue to figure out, but it seems there might be a silver lining for Canada at least? Could lead to cheaper used cars and trucks in Canada too!

There may be a silver lining in the tariff dark cloud. It is estimated that roughly 25% of Canadian used cars have traditionally been exported to the U.S. But since it is difficult to prove that used vehicles comply with USMCA rules of origin, tariff costs on those used-car exports will jump from 2.5% to 25% on cars and SUVs under the new automotive tariffs. Tariffs on used pickup trucks could reach 50%. As a result, fewer used vehicles will be exported.

Probably will all change tomorrow though

 

[JWC86]

I’m very skeptical that 25% of used cars from Canada end up in the US. Maybe as junkers getting bought by auto wreckers? IDK, just seems like a lot.

Edit: I did some quick research, appears 10-15% of used cars from Canada end up in the USA.

 

[4WD]

I have been watching used cars heading to Mexico for 20 years - some look rough - others nice …

 

[fantastic]

If there are less new vehicles sold that leaves a smaller supply of used vehicles. Demand will be higher for used, b/c new is expensive, & with a smaller supply it will lead to higher prices for used vehicles. I understand you may think there's a silver lining for Canadians but this won't go well for either countries consumers.

 

[dadto2]

Here on the border we see quite a few Canadian cars in the used market. They were easier to spot back in the days then the speedos were hard set to metric or English readout. Now that most cars can switch back and forth, there's virtually no difference.

 

[zzyzzx]

I’m very skeptical that 25% of used cars from Canada end up in the US. Maybe as junkers getting bought by auto wreckers? IDK, just seems like a lot.

Edit: I did some quick research, appears 10-15% of used cars from Canada end up in the USA.

I see them around here all the time. I'd also say that most used vehicles I look at the CarFax on are from places where vehicles typically rust. I suspect that's on purpose. As in I almost never see a used vehicle that's from VA, NC, DE, but I see them from NY, NJ, PA. I know vehicles from parts on PA or NJ are probably fine, but they are almost always from parts of PA and NJ that get a lot of road salt though.

 

[carviewsonic]

Tough time to be in the automotive industry right now. Anyone, be they from sales, to assembly line, to management is facing an uncertain future no matter where they are located.

 

[JeffKeryk]

Tough time to be in the automotive industry right now. Anyone, be they from sales, to assembly line, to management is facing an uncertain future no matter where they are located.

It goes beyond the automotive industry. Uncertainty makes business plans a crap shoot. My career centered around the corporate forecast. "I'll take a known over an unknown any day." Decisions are made primarily on level of confidence.

 

[97prizm]

I have been watching used cars heading to Mexico for 20 years - some look rough - others nice …

My parents live in Arizona and the funny thing is that a number of junkers are not even ending up in Mexico. Some are going straight to Guatemala and other countries

 

[John105]

I noticed a Y pipe I bought in February is made by an American company. However, once installed, I noticed Made in Canada was etched on it. I also saw this part for sale on eBay from a seller in Canada.

As I type, it's no longer on the RA website at all.

 

[John105]

I see them around here all the time. I'd also say that most used vehicles I look at the CarFax on are from places where vehicles typically rust. I suspect that's on purpose. As in I almost never see a used vehicle that's from VA, NC, DE, but I see them from NY, NJ, PA. I know vehicles from parts on PA or NJ are probably fine, but they are almost always from parts of PA and NJ that get a lot of road salt though.

I live in the Phila metro and the exhaust on our 2011 GM broke this week. 13.5 years on the road. imho that's not happening at all on a car from say CA or FLA not parked at the beach. I wouldn't buy a used car from here, why, is it cheaper? I got a used car from FL and my wife's cousin CA.

 

[zzyzzx]

I live in the Phila metro and the exhaust on our 2011 GM broke this week. 13.5 years on the road. imho that's not happening at all on a car from say CA or FLA not parked at the beach.

It's unclear to me what parts of PA are bad for rust. I don't think it's the whole state, or maybe just certain parts of the state are much worse than others? You implied that the whole state is bad with respect to rust, which might be correct.

I wouldn't buy a used car from here, why, is it cheaper?

It's just seems that the only thing available when I'm looking. Yes its weird that I hardly ever find used vehicles around here that are from around here.

 

[OVERKILL]

I’m very skeptical that 25% of used cars from Canada end up in the US. Maybe as junkers getting bought by auto wreckers? IDK, just seems like a lot.

Edit: I did some quick research, appears 10-15% of used cars from Canada end up in the USA.

It's very common. Both of my previous Grand Cherokee SRT's went state-side as did my SRT Charger. The exchange rate made it favourable for dealers to do this.

 

[Delta]

A local used dealer that I use and have bought vehicles from in the past (including our current '23 Camry) buys a decent amount of Canadian import trucks. Mostly from the Quebec region. I asked them about it, and they claim it's due to the lack of rust. However, I've viewed some of those trucks in person and they're as rusty if not rustier than trucks that have been local. Who knows.

The neat part is though all of the trucks I've seen on the lot from Canada have block heaters, so there is that.

 

[Number_35]

A local used dealer that I use and have bought vehicles from in the past (including our current '23 Camry) buys a decent amount of Canadian import trucks. Mostly from the Quebec region. I asked them about it, and they claim it's due to the lack of rust. However, I've viewed some of those trucks in person and they're as rusty if not rustier than trucks that have been local. Who knows.

The neat part is though all of the trucks I've seen on the lot from Canada have block heaters, so there is that.

Quebec vehicles are infamous for being rusty. A lot of them have been smoked in too.

However, Quebecers seem to like manual transmissions, so that's a plus.

 

[Delta]

Quebec vehicles are infamous for being rusty. A lot of them have been smoked in too.

However, Quebecers seem to like manual transmissions, so that's a plus.

Being of French descendants I guess that makes sense as last I recall they liked to smoke

 

[Number_35]

Being of French descendants I guess that makes sense as last I recall they liked to smoke

Yes, Quebec is very European in some ways. The smoking is part of it for sure.

 

[fantastic]

I have been watching used cars heading to Mexico for 20 years - some look rough - others nice …

My parents live in Arizona and the funny thing is that a number of junkers are not even ending up in Mexico. Some are going straight to Guatemala and other countries

While I'm not 100% sure it appears these folks are hauling mostly old, used, crashed vehicles down towards Mexico or South America regions. They all seemed to line up over several days before crossing over the Rio Grand River into Mexico. I've seen the line longer than this last year.

Yes, that's a Harbor Freight Generator in the front of my truck.. Safety first.

 

[PandaBear]

Most likely Canada would end up with more import from Japan or other countries where US would have gotten in the past.

Mexico may take those used car from Canada into Mexico via ship instead of into the US. US may end up as an island in the auto world with no import except some exotic small volume stuff.

 

[SC Maintenance]

I have looked at at least 100 car faxes over the last year, and only saw one car from Canada. It stood out. I look at where they were titled first - I have no interest in rust.

If there all coming here, then maybe they stay up North or something?