U.S. Tariffs on Canadian Auto Exports Hit $380 Million

Canadian automotive exports incurred more than US$380 million in U.S. tariffs during July, according to an analysis by the Anderson Economic Group. The total includes US$311 million on assembled vehicles and US$72 million on auto parts.

The surge follows a period from April through June when U.S. customs allowed automakers to claim exemptions for most vehicles under the Canada-United States-Mexico Agreement. Under new tariff policies of the Trump administration, the share of Canadian vehicles exempt from tariffs dropped from 99% to 36% in July. Combined with Mexican exports, nearly US$1.4 billion in duties were imposed on North American automakers and suppliers during the month.

Patrick Anderson, CEO of Anderson Economic Group, noted that automakers previously relied on temporary allowances that provided exemptions for most parts and vehicles through June. He stated that these costs will likely be passed on to consumers in the near future.