If the U.S. follows through with the looming threat of automobile tariffs, people in Saskatchewan can expect to pay more for new vehicles.
Back in May, U.S. President Donald Trump ordered an investigation into the import of auto parts because they could be considered a threat to national security.
Susan Buckle is the executive director for the Saskatchewan Association of Automobile Dealers and said if tariffs and counter-measures are imposed, the cost of a new vehicle would go up by $1,000 to $2,500.
“A lot of the vehicles that we do sell here actually come in from the States – new vehicles – because that’s where they’re made,” Buckle explained. “Of course with their tariffs of whatever, it could be 25 per cent, it’s definitely going to mean higher prices on the vehicles for consumers here.”
Buckle said the bigger threat is to the manufacturing industry primarily based in eastern Canada, where 100,000 jobs would be at risk immediately if the U.S. follows through on auto tariffs.
The Canadian Association of Automobile Dealers (CAAD) states that more than 80 per cent of Canadian automotive production is exported to the U.S.
The CAAD also said American consumers would actually bear the brunt of tariffs through higher vehicle prices.
This week, government officials from Canada and Mexico, along with several European and Asian countries, held a meeting to talk about a coordinated strategy to respond to potential auto tariffs.
“I’m hoping that the U.S. just leaves it as it is, because it honestly impacts their country a lot heavier than it does our country, but I mean it’s huge for our country, I can imagine for the U.S.,” Buckle commented.