Car buyers in Ottawa may soon face higher prices after U.S. President Donald Trump announced a 25 per cent tariff on imported vehicles, set to take effect April 2.
With more tariffs potentially on the way, some consumers are acting now to avoid future costs, while others remain unsure whether to buy or wait.
Claude Brisson made his decision. He just purchased a high-end Ram Longhorn and has no regrets.
“I don’t know what the difference would have been, but probably a lot,” said Brisson. “Every day it’s changing, and people really don’t know.”
Brisson believes the tariffs will have a damaging impact on trade between Canada and the U.S.
“It’s terrible. It really is because we should be neighbours, (and) we should be friends,” Brisson said. “People are becoming more educated on what’s made in Canada, so I think that’s a good thing, but people are going to stockpile and that will be good for the local economy, but overtime it might slow down.”
Industry experts say the effects of the tariffs may not be immediate, but they could ripple through both the Canadian and U.S. auto markets over time.
“Tariffs, if they came in, don’t affect what we already have in stock, and the ground inventory of dealerships,” said Sean Gibson, general manager at Ottawa St-Laurent Jeep and Ram. “We’ve been planning for a situation like this and what the dealerships has today isn’t affected by tariffs. An important factor is that if someone is considering or needing to change vehicles, now is probably a good time to do it. Prices aren’t going to get lower in the future and there are incentives in place at all dealerships whether it’s a cash rebate or whether it’s zero per cent financing. The manufacturers have already put those incentives out to assist consumers in making a transaction today.”
Meanwhile, some consumers are choosing caution.
“There is a lot of uncertainty with the pricing, with the inflation, with everything that’s coming,” said George Miscampbell, manager of Speedy Auto Repair on St. Laurent Boulevard.
Miscampbell notes there has been an uptick in business.
“People are holding on to older vehicles longer, trying to maintain them better instead of taking on new payments,’ Miscampbell added.
However, if tariffs take effect, Miscampbell says repair costs will eventually rise as well.
“It’ll be everything from tires to brake parts, any part that gets trucked in here, which is just about everything,” he said. “Most products come from America, so right now it’s more a wait and see, we’re holding our breath.”
For Brisson, buying now means avoiding current, or near-future economic uncertainty.
“I’ll have this for almost ten years,” said Brisson. “That’s usually the length I keep a vehicle.”
With tariffs looming and supply chains on edge, experts say one thing is certain, uncertainty in the auto market isn’t going away anytime soon.
