Toronto, Ontario — Canadian vehicle and parts exports to the U.S. were hit with hundreds of millions in new tariffs in July after years of entering duty-free under trade exemptions.
According to the Anderson Economic Group (AEG), reported by CTV News, Canadian autos and parts faced more than US$380 million ($525 million) in levies during the month.
Beyond that, AEG data shows tariffs totalling $1.1 billion were imposed on assembled vehicles from Canada and Mexico, along with another $276 million on auto parts — all in July 2025. In total, $1.39 billion in duties was collected on cars and parts from both countries.
Anderson Economic Group’s breakdown for July listed $802 million on cars from Mexico, $205 million on Mexican parts, $311 million on Canadian cars and $72 million on Canadian parts. Together, those added up to $1.39 billion.
Until June, duties on Canadian vehicles were minimal because most imports were recorded as non-dutiable. In July, tariffs on Canadian vehicles jumped to $311 million, equal to about 26 percent of the dutiable value, while $72 million was applied to Canadian auto parts, representing 36 percent.
As a result, the share of Canadian vehicles entering the U.S. without tariffs fell from 99 percent to 36 percent in one month. Mexico saw a similar decline, with the share of tariff-free vehicles dropping from 91 percent in March to 21 percent in July.
Anderson Economic Group said the costs were absorbed by North American automakers and suppliers. Automakers affected included GM, Ford, Stellantis, Toyota, Honda, Hyundai, Kia, Tesla, Rivian, Mercedes-Benz, Volkswagen and BMW.
