It’s another day with more tariffs soon to be on the way, but these could significantly impact the new and used car market in the province of B.C. and likely in much of Canada.
The tariffs, which would go into effect on Thursday, April 3, apply to some vehicles and certain auto parts but could be expanded.
“The 25 per cent tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary,” the White House revealed last week.
What does this mean for you as a B.C. or Canadian resident? Potentially, a lot. And if this is bringing back memories of how the auto market shifted during COVID-19, you’re not alone.
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While many American news reports have outlined how these tariffs may negatively impact the auto industry, how will they affect you as a consumer?
Trump has targeted the auto and metals industries in Canada and Mexico with tariffs | CNN Businesshttps://t.co/sgKr66RxCF
— Kristin Chase Andrade (@KristinAndrade) April 2, 2025
AutoTrader Canada will likely be a busy platform this year. Baris Akyurek, VP of Insights and Intelligence, spoke with Daily Hive and answered some questions about this auto-tariff reality.
One obvious outcome is the direct impact on new car prices.
“Between the United States, Mexico and Canada, the supply chains are pretty tight when it comes to automotive manufacturing. So, if there are tariffs that impact car parts or the finalized cars, obviously, there will be an increase.”
The tariffs will also indirectly but notably impact the used car market.
During COVID-19, the market had supply chain issues and a chip shortage severely impacting the supply of new cars. So, people turned their attention to used cars, which sometimes allowed sellers to sell at a higher cost.
“Used car prices because of the increase in demand went up by 21.7 per cent,” Akyurek said.
AutoTrader conducted a survey and asked customers over the age of 19 back in February what their buying intentions were and how tariffs would potentially impact them. Among respondents, 47 per cent said it would affect their decision, and 30 per cent of those respondents said that they would buy a used vehicle instead of a new vehicle.
“What we are seeing, especially since the beginning of March, is the used car market has been pretty hot, mostly due to the fact that there is this anticipation of these tariffs coming into effect at the beginning of April, so there’s a bit of a pull-forward impact.”
Akyurek has seen the impact on the AutoTrader website. More folks have been landing on the site. Searches for used cars are also seeing a significant uptick. In the last five weeks, there has also been an increase year-over-year for used car transactions.
Used car prices are also seeing a bit of an increase on the platform.
So, should you wait before making a transaction? Akyurek doesn’t believe so.
“If you have the financial means, I would pull the trigger. I would not wait.”
Akyurek referred back to how prices increased substantially during COVID-19 and that it might be a good idea to avoid a potential repeat of that trend. So he says if you need a vehicle, “definitely pull the trigger.”
What about electric vehicles?
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Every year, AutoTrader puts out another survey asking users about their interest in buying an electric vehicle, and Akyurek says that every year, there’s a slight decline in demand.
“Because of the mandates that we have, more and more cars are being manufactured. So what happens when there is lower demand and higher supply? Prices come down. That’s exactly what’s happening for EVs, both new and used.”
Compared to the overall market, EV prices are declining at a faster rate.
It didn’t help that the federal EV incentive program ended earlier this year, offering even fewer reasons to purchase an EV. Because of these reasons, Akyurek thinks it could be a challenging year for EV sales.
Are you in the market for a used or new car? How is this tariff news impacting your potential intent to purchase?