As we write this, the automotive industry enjoys a brief reprieve of 30 days from the punishing tariffs imposed on Canadian exports. This was announced by the U.S. administration on March 5th.

It does not feel like a reprieve however, it feels like a sword hanging over our heads, and when it falls, it’s still going to hurt. Indeed, the automotive industry will feel the sting more than most, for a vast variety of reasons.

Members are calling wondering what effect all of this will have on used vehicle exports to the U.S.

If a 25% tariff were to apply to vehicles which are “Products of Canada”, which is the language used in the operative orders, presumably it would clearly apply to a used vehicle built (new) in Canada. Such a VIN would start with a “2”. VINs starting with a 3 are made in Mexico, and they would suffer the same fate.

VINs starting with a 1, 4 or a 5 should be better off as they are built in the U.S. and might be saved from the effect of the tariff bite at the border. Even that remains unclear however, due to “rules of origin” which can get complicated.

We don’t envy the job of customs officials on either side of the Canada – U.S. border in the coming weeks. We continue to be gravely concerned about chaos at the border.