U.S. import taxes on Canadian vehicles and vehicle components escalate to almost $380 million last July, according to a media report.
In a recent report by The Canadian Press, published on September 19, 2025, data analysis by the Anderson Economic Group revealed a notable increase in tariffs on Canadian vehicle and auto part exports in July 2025. The tariffs, which were the highest in the previous three months, represented approximately 26% and 36% of the total dutiable value of Canadian car and auto part exports, respectively. This significant increase was due to the implementation of U.S. levies. The report indicated that more than $311 million in tariffs were imposed on Canadian autos alone, with an additional $72 million on auto parts. This marked a noticeable increase compared to previous months, as the tariffs were newly implemented and had not yet been partially reduced by the agreement reached on July 27, 2025, between the US and the EU to lower these tariffs to 15% starting August 7, 2025. The decrease in the share of exempt vehicles from 99% to 36% under the Canada-United States-Mexico Agreement also suggests a potential increase in the overall cost of Canadian car exports. However, the report did not provide specific figures for the new tariffs imposed on Canadian cars in July. The increased costs from tariffs on Canadian car exports are expected to become embedded into the prices paid by consumers in the near future. The report, however, did not provide any analysis of the impact of the tariffs on the overall auto industry in Canada or discuss the potential implications for the Canada-United States-Mexico Agreement as a result of the increased tariffs. The report did not mention any potential negotiations or responses by the Canadian government to the increased tariffs, nor did it discuss the impact of the tariffs on Canadian car exports and auto parts in the months following July. The data analysis was released last week, offering a timely insight into the current state of the auto industry amidst the ongoing tariff disputes.
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