Automotive Tariffs
With the current economic uncertainty, we’ve collected your most common questions and concerns about automotive tariffs and their impact on consumers.
Updated as of April 17, 2025
Frequently Asked Questions
Is Birchwood a Canadian company?
Yes, Birchwood was founded 63 years ago in Winnipeg Manitoba. We are fully Canadian-owned and operated, with 24 Canadian dealerships and over 1,200 employees within Manitoba and Saskatchewan.
How will tariffs affect car prices?
The tariffs are expected to affect the supply chain of vehicles, potentially driving up costs for automakers in North America. Auto parts can be involved in several border crossings between Canada and the U.S. before a vehicle is completely assembled. This will result in increased production costs, which may be passed along to consumers, and potentially lead to higher car prices overall in both Canada and the U.S. Automakers are assessing their supply chains and manufacturing plants in light of the recent tariff announcements and fluid situation.
I need to buy a car. What are my options to mitigate the impact of potentially higher car prices?
Currently, any in-stock new vehicle is not impacted by the tariffs.
Birchwood also has a wide selection of used vehicles that are also not subject to the Canadian counter tariffs. We encourage you to look at our wide selection of inventory. Please check back often, as our inventory changes daily.
How can I avoid the impact of the Canadian tariffs?
Canadian counter tariffs are currently in effect. Tariffs will apply only to vehicles made in the US. Any in-stock new or used vehicle is not affected. In addition, any vehicle manufactured outside of the US is not subjected to tariffs.
Will these tariffs affect vehicles that I lease instead of purchase?
Yes, tariffs may increase the cost of both leased and purchased vehicles. Any in-stock new or used vehicle is not affected.
Will Birchwood adjust pricing on vehicles already in inventory due to the tariffs?
No, vehicles already in inventory before tariff implementation will not have tariffs added to the price.
Will my trade-in value be affected by the tariffs?
Trade-in values are influenced by overall market conditions. If vehicle prices rise due to tariffs, it could increase the value of your trade-in.
Do these tariffs apply to parts and service for vehicles already on the road?
As of now, tariffs on auto parts are still being clarified by the Canadian government. If implemented, it could raise prices on parts, potentially affecting service and maintenance costs.
If I pre-order a new vehicle, will there be any changes to the vehicle’s purchase price at delivery?
Tariffs will increase the final price of impacted models. The only way to protect yourself against the possibility of price increases is to choose to purchase an in-stock vehicle. If you currently have a vehicle on order, please contact your Birchwood Product Advisor for current status.
Can I reserve a vehicle at today’s price even if it arrives after the tariffs take effect?
Pricing is generally tied to the delivery date and applicable automaker’s pricing at that time. Speak with a Birchwood Product Advisor to explore all available options.
Are there any government programs or incentives to help offset increased vehicle costs?
At this time, there are no new government programs tied to tariffs. Provincial EV rebates and other incentives still apply for qualifying vehicles.