Lorraine Explains: Ditching American? The car wars could get ugly

Here’s where Canadians can find some shelter from the fallout; these vehicles are built outside the U.S.

Which vehicles are made in Ontario, Canada?

Which vehicles are being made outside of the U.S.?

Hyundai Santa Fe Hybrid
Hyundai Santa Fe HybridPhoto by O’Connell Creative

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.”

A car hauler carries 2025 Toyota RAV4 vehicles as it enters to cross the Ambassador Bridge in Windsor, Ontario to go to Detroit, Michigan on February 3, 2025
A car hauler carries 2025 Toyota RAV4 vehicles as it enters to cross the Ambassador Bridge in Windsor, Ontario to go to Detroit, Michigan on February 3, 2025Photo by Jeff Kowalksy /Getty

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.” 

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