I know you’re sick of reading about tariffs. Or paused tariffs. Or the continued threat of tariffs. Canadian consumers should study which vehicles are made here, but also which vehicles are coming from countries that aren’t threatening us with tariffs, possibly risking retaliatory tariffs. With the borderless industry we’ve created with Mexico and the U.S., components of our Canadian-made vehicles could be unable to dodge increased costs, nor could vehicles built in the U.S. It will all come out of your pocket, so let’s see if any sweet spots could provide a softer landing for Canadian consumers if a tangible, reasonable peace proves unattainable. Can’t believe I just had to type that sentence.
Which vehicles are made in Ontario, Canada?
First and most important, know which passenger vehicles are made here in Ontario: GM makes the Chevy Silverado and the Equinox in Ontario (Oshawa and Ingersoll); Honda makes Civics and CR-Vs in Alliston; Toyota makes the RAV4 in Woodstock, and in Cambridge the RAV4 as well as the Lexus NX and RX. Stellantis makes the Chrysler Pacifica and Grand Caravan at its Windsor Assembly plant along with the Dodge Charger Daytona. At this point in time, nobody knows (or will go on the record with) the answer to the big question: will costs increase for Canadians on Canadian-assembled vehicles if components are hit with tariffs?
Which vehicles are being made outside of the U.S.?
For consumers looking for reasonably priced vehicles, good news will be coming from makers like Hyundai and Mazda. The Hyundai Santa Fe hybrid and the Tucson hybrid/PHEV are both imported from South Korea. While their gas counterparts and the Santa Cruz are currently coming from the U.S., you know discussions are going on in boardrooms across the industry. The Hyundai Palisade and the Elantra both come from South Korea.
For Mazda fans, great news. The Mazda3, the MX-5 and CX-70 are all brought in from Japan. The CX-90 is American-made. For Toyota, the Corolla Hatch, GR Corolla, Crown Signia, bZ4X, Land Cruiser and the 4Runner are all imported to Canada from Japan. Also coming from Japan are the Lexus NX PHEV, RX PHEV and the IS. I asked a Hyundai sales manager if it was business as usual. “Yes, but I’m more worried about someone at Stelco losing their job.” A good reminder, people out of work don’t buy cars.
For Chevrolet buyers in Canada, the Trax and Trailblazer are brought in from South Korea, and as mentioned, the Silverado is made right here, as is the Equinox.
While most Subarus for the North American market are made at its Indiana facility, the Japanese maker could pivot if tariffs land. In the market for a MINI? The Countryman is imported from Germany, while the Cooper is still made in England. Acura builds almost all models in the U.S., while Volkswagen badges are almost all Mexican-made, as is the Audi Q5. Providing more muddy questions is something like the Volkswagen ID.4. The EV could come under retaliatory tariffs proposed by Canada because it’s made in the U.S.
Ford isn’t currently building in Canada, meaning if you’re in the market for an F-150, Escape, Ranger, or Explorer, know they will be coming from the U.S. The Maverick and the Bronco Sport are made in Mexico.
If you’re scouting out some fine German engineering, you can settle easily on a Porsche. While the company does have production outside of Germany, none are within the domain of the Tariff Trauma. Mercedes-Benz has several facilities in Mexico and one in Tuscaloosa; there could be some reorganizing of seating charts depending on what transpires at the circus beneath us. While we’re in the upper tiers, BMWX1 and X2 are both made in Germany, as is the 2 Series hatchback, I4, M3, M4 and M5. The X3, X4, X5, X6 and X7 are all American builds, and the 3 Series and 2 Series coupe are made in Mexico.
As of this writing, vehicles made in Mexico that comply with the USMCA deal fall under the 30-day extension, which is good news (for now) for Volkswagen, which produces most of its North American models from plants in Mexico. GM is another automaker with a lot of exposure in that country. There are a few more details on other brands from Reuters here. Because the U.S. paused tariffs on vehicles that comply with the USMCA, that means those that don’t — including those Mexican BMW models — would be faced with the steep hit. As always, questions are numerous and details are scarce.
There has been a lot of confused chatter regarding those Mexican-made vehicles: can Canada import from Mexico without encountering American tariffs (should they be applied at some later date)? The APA response: “There is a long history of allowing goods in transit to a third-party to transit tariff free. Usually it’s ‘bonded’ to ensure that an accounting will be made when it leaves the transit country to avoid incurring the tariff. That would permit rail transportation between Canada and Mexico.”
Daniel Ross, senior analyst over at Canadian Black Book says, “I would assume manufacturers are looking to skip U.S. borders altogether with their vehicle transport, fully assembled or otherwise. Vehicles assembled in Mexico for Canada would ship by sea and end up at a port in Canada. Skipping the U.S. entirely, save for maybe some parts that are subject to tariffs.”
If the Trump administration goes forward with its proposed tariffs, George Iny at the APA muses about another outcome: something like the Ford Maverick, coming from Mexico would face the tariff in the U.S. “It will be a tougher sell in the U.S., so I predict that some of that supply could be diverted to Canada.” He goes on to note, “if Canada imposes a tariff against U.S.-sourced vehicles, it could make some models untenable in the market.” The chaos, as the kids say, is a feature, not a bug. But Canadians still have some flex, and could bring big pain to automakers in places like Kentucky.
Driving.ca’s recent addition of Stephen Beatty on the tariff beat is incredibly welcome. Like everything these days, information is shifting every few hours. This list, assembled with a huge assist from the Automobile Protection Association’s Ron Corbett, isn’t exhaustive, but it’s a good resource for consumers in the (oh-so-turbulent) market to have in hand. Remember: everything currently in inventory is free from tariffs. Be cautious of sellers with incomplete or erroneous information.
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