BLAIR QUALEY
BRITISH COLUMBIA – Canada’s trading relationship with the United States has, until recently, been defined by partnership and mutual benefit. But that relationship is now under significant strain. Recent announcements from the U.S. government to impose sweeping tariffs on imported new vehicles and parts have sent shockwaves through the automotive industry and the effects will be felt deeply here in British Columbia, by our sector and consumers.
The New Car Dealers Association of BC (NCDA) represents more than 400 franchised dealers across the province who sell and service (or new and used) vehicles and employ over 30,000 British Columbians. The potential damage of tariffs to our sector, and to Canadian consumers’ affordability, is quite considerable, so there is a great deal at stake for dealers and those who work in the industry, in every corner of the province.
U.S. sources have estimated tariffs as high as 27.5% or more, while CADA (Canadian Automobile Dealers Association) currently suggests Canadian dealers can anticipate an average 12.5% tariff rate on affected vehicles.
For our industry, the timing could not be worse. BC’s new car dealers have endured the turbulence of the pandemic, prolonged supply chain disruptions, inflation, and now this — what some are calling the most severe trade shock since the 1930s. As one dealer said to me this week, “It’s been a heck of a decade.” And we’re only halfway through it!
In response, the NCDA has called on the provincial government to step up with meaningful action to help offset the impact of these tariffs and protect affordability for consumers. In a recent letter to Premier David Eby, we proposed three immediate measures:
- A temporary PST holiday or reduction on new vehicle purchases.
- A pause on Zero Emission Vehicle mandates enforcement penalties, which would otherwise further drive up prices.
- Adjusting the Luxury Tax threshold, currently set at $55,000—an outdated figure that now includes many family vehicles due to inflation and rising costs.
On dealership showroom floors, conversations are shifting. Some manufacturers may choose to absorb costs temporarily; others will pass them on. Dealers are telling customers: if you’re thinking about buying, now may be the best time. But this is about more than just the sticker price of a new car. It’s about jobs. It’s about families who rely on their vehicles for work, school, and everyday life. It’s about ensuring Canadians have continued access to the safe, reliable, and increasingly energy-efficient vehicles they need and the trained service technicians to maintain them.
The Canadian auto sector is one of our country’s most integrated and essential industries. It powered $51 billion in exports in 2023 alone, accounting for more than 90% of our auto and parts exports going to the United States.
CADA, along with other key automotive stakeholders, continues to work closely with federal officials to support a strategic and measured retaliatory response, one that aims to protect jobs, prevent further escalation, and maintain long-term industry stability.
Let’s hope cooler heads prevail, and that policymakers on both sides of the border recognize the importance of cooperation and our long, long history of partnership and mutually beneficial collaboration. In the meantime, we must act, and we must prepare, because it’s the consumers and local economies here in Canada that bear the brunt of this burden.
Blair Qualey is President and CEO of the New Car Dealers Association of BC. He can be reached at bqualey@newcardealers.ca.
