Which Cars Will Be Affected by Tariffs in Canada?
Which Cars Will Be Affected by Tariffs in Canada?
Posted on April 11, 2025
Which Cars Will Be Affected by Tariffs in Canada?
Everything You Need to Know in 2025
By Rendez-Vous Nissan – April 2025
Why Are Tariffs in the Headlines – And Which Cars Will Be Affected by Tariffs in Canada?
If you’ve been shopping for a car or keeping up with the news, you’ve probably heard about the new 25% tariffs. You might be wondering exactly which cars will be affected by tariffs in Canada and how this might impact your next vehicle purchase.
On April 9, 2025, the Canadian government began applying these tariffs to specific vehicles imported from the United States. This change responds to new U.S. tariffs on Canadian-made auto products.
At Rendez-Vous Nissan, we’re here to explain what’s going on—and more importantly, how it affects you.
Why Tariffs Are Being Applied — And Which Cars Will Be Affected by Tariffs in Canada
Earlier this month, the U.S. government imposed tariffs on Canadian auto exports. In return, Canada introduced its own 25% tariffs targeting certain U.S.-built vehicles that don’t meet North American trade standards under the CUSMA agreement.
In practical terms, the Canadian government now charges extra on vehicles that don’t contain enough North American-made components. So, which cars will be affected by tariffs in Canada? Let’s break that down.
Which Vehicles Will Be Affected?
If you want to know which cars will be affected by tariffs in Canada, you can check the official Government of Canada list of affected vehicles. Below is a breakdown of the vehicle types that now carry an additional 25% cost when imported.
Gasoline-Powered Vehicles
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Cars with engines larger than 1,000 cc
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Mid-size sedans and SUVs with 1.5L to 3.0L engines (e.g., Ford Escape, Chevrolet Equinox)
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These models often come from U.S. factories
Diesel Vehicles
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Diesel-powered sedans, trucks, and SUVs
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Both light-duty and heavy-duty models fall into this category
Hybrids and Plug-in Hybrids
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Non-plug-in hybrids are now subject to the tariff
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Some plug-in hybrids may qualify if they include non-North American components
Electric Vehicles
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EVs with parts sourced from outside North America might also be affected
Light-Duty Pickup Trucks
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Trucks under 5 tonnes, whether for work or personal use, are included
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This affects several gasoline, diesel, and hybrid pickups assembled in the U.S.
What Makes a Vehicle CUSMA-Compliant?
The CUSMA agreement allows tariff-free trade between Canada, the U.S., and Mexico—but only for vehicles that meet certain content standards.
To qualify:
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The vehicle must be assembled in North America
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A majority of its components must also come from North American suppliers
Even if a vehicle is assembled in the U.S., it may still get hit with tariffs if key components (like batteries or transmissions) come from outside North America.
What This Means for Canadian Car Buyers
Prices Will Likely Rise
Cars that fall under these new tariffs will likely see a price increase of several thousand dollars. U.S. manufacturers and importers are passing on the added costs to consumers.
You Might See Fewer Models
Many dealerships plan to reduce their inventory of affected vehicles to avoid stocking slow-moving or overpriced models.
Resale and Trade-In Values May Shift
If you currently drive a car that's now subject to these tariffs, its resale value could decrease. It might also fetch less on trade-in, depending on demand and availability.
Are Nissan Vehicles Affected by the New Tariffs?
Most Nissan models at Rendez-Vous Nissan are not affected by the new tariffs.
Here’s why:
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Nissan assembles many popular models—like the Rogue and Kicks—in Mexico
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Mexico is part of CUSMA, so those vehicles don’t face tariffs
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Other Nissan models come from Japan, which are also outside this trade dispute
By focusing on smart global production, Nissan helps protect customers from price hikes tied to shifting trade policies.
How Rendez-Vous Nissan Can Help
We Stock Tariff-Free Vehicles
Our inventory includes a wide selection of vehicles that remain unaffected by the 2025 tariffs. That means you still have access to competitive pricing and value.
We Offer Clear, Honest Pricing
Our team will walk you through pricing and explain whether a specific vehicle might be subject to tariffs. We don’t believe in surprises—only good service.
We Provide Trade-In Support
Want to upgrade? We’ll evaluate your current vehicle and let you know how the new tariffs affect its value (if at all). Our goal is to get you the best deal possible.
What Should You Do Now?
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Ask where the vehicle was made. Most sales reps can answer this—and we certainly can.
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Compare alternatives. A Mexico-built vehicle like the Rogue or Sentra can offer everything you need, minus the tariff.
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Shop with confidence. With the right dealer, you can find the best value without getting caught off guard by new fees.
FAQ
Will these tariffs affect used cars?
No. The 25% tariff applies only to new vehicles imported from the U.S. Used cars already in Canada are not impacted.
Are all U.S.-built cars included?
No. Only non-CUSMA-compliant vehicles face the 25% surcharge. Some U.S.-assembled models still meet the content requirements and remain unaffected.
Are Nissan vehicles part of the tariff list?
Most Nissan vehicles sold in Canada are made in Mexico or Japan. These models remain exempt from the new tariffs.
Will tariffs change lease or finance payments?
Yes, if the vehicle’s price increases because of tariffs, monthly payments could go up. Choosing a tariff-free model helps keep those costs down.
Could Canada or the U.S. cancel the tariffs later?
Yes. Tariff decisions often change depending on political negotiations. However, it’s best to make purchase decisions based on the current rules.
Final Thoughts
Understanding which cars will be affected by tariffs in Canada helps you make better decisions in a changing market. By choosing a CUSMA-compliant or tariff-free vehicle, you can avoid unnecessary costs and get more value for your money.
At Rendez-Vous Nissan, we’re ready to help. Visit us in Hawkesbury or check out our inventory online to find your next vehicle—without the tariff worries.