Tariff Cars: US Vehicles Facing 25% Tariffs from April 9, 2025

If you import vehicles from the United States to Canada, upcoming changes could have a direct impact on your business and financial bottom line. Starting April 9, 2025, Canada will impose a 25% tariff on certain U.S.-origin vehicles, part of a countermeasure against tariffs targeting the Canadian auto sector. This comprehensive list of “tariff cars” covers passenger and commercial vehicle types, including internal combustion, hybrid, and electric models.

Understanding these changes is crucial for car dealers, importers, and supply chain professionals. Whether you’re planning to bring in vehicles this spring or already have shipments in progress, knowing which products are affected will help keep your operations compliant and cost-effective.

Source: Department of Finance Canada

What Are Tariff Cars?

Tariff cars refer to vehicles from the United States that will be subject to a 25% import duty, effective April 9, 2025. These tariffs apply to non-CUSMA-compliant U.S.-made vehicles and to the non-Canadian and non-Mexican content of CUSMA-compliant U.S.-made vehicles.

Comprehensive List of U.S.-Origin Vehicles Facing the Tariff

Below is a summary of the major vehicle categories and specific types that will be subject to the tariff as outlined by the Canadian Department of Finance.

Passenger Vehicles (HS Code 8703 Series)

• Spark-Ignition Engines
  • Exceeding 1,000 cc but not exceeding 1,500 cc
  • Exceeding 1,500 cc but not exceeding 3,000 cc
  • Exceeding 3,000 cc
• Compression-Ignition (Diesel) Engines
  • Not exceeding 1,500 cc
  • Exceeding 1,500 cc but not exceeding 2,500 cc
  • Exceeding 2,500 cc
• Hybrids (Gasoline & Electric, Not Plug-In)
  • Cylinder capacity not exceeding 1,000 cc
  • Other types not otherwise specified
• Hybrids (Diesel & Electric, Not Plug-In)
• Plug-In Hybrids (Gasoline & Electric)
  • Cylinder capacity not exceeding 1,000 cc
  • Other types not otherwise specified
• Plug-In Hybrids (Diesel & Electric)
• Electric-Only Propulsion
• Other (including specialty and non-listed passenger vehicles)

Commercial & Goods Transport Vehicles (HS Code 8704 Series)

• Diesel Engine (g.v.w. not exceeding 5 tonnes)
• Spark-Ignition Engine (g.v.w. not exceeding 5 tonnes)
• Hybrid (Diesel & Electric, g.v.w. not exceeding 5 tonnes)
• Hybrid (Spark-Ignition & Electric, g.v.w. not exceeding 5 tonnes)
• Electric-Only Propulsion

Table of Affected Tariff Cars

(For in-depth tariff details, see the Canadian Customs Tariff Schedule.)

Important Notes

• These tariffs apply to vehicles originating from the United States as determined under the CUSMA Regulations.
• U.S. vehicles in transit to Canada on April 9, 2025, are exempt from the new tariff rates.
• The 25% countermeasure remains in place until the U.S. removes its tariffs against the Canadian auto sector.

How Businesses Should Prepare

With these changes coming soon, proper planning is essential. Importers should evaluate existing supply chains, assess the financial impact of the 25% tariffs, and anticipate customs clearance requirements for upcoming shipments classified as “tariff cars.”

Need Help Navigating the New Tariffs?

Working with an experienced customs broker is the easiest way to avoid costly compliance mistakes and delays at the border. Brokers can help:

• Classify your vehicles correctly under Canada’s Harmonized System (HS)
• Calculate duties and estimate costs in advance
• Advise on any regulatory changes or exemptions
• Ensure smooth customs clearance for each shipment

Contact a trusted customs broker today to safeguard your business as “tariff cars” regulations take effect in 2025.

Source: Department of Finance Canada

For questions or support, reach out to a licensed customs broker who specializes in cross-border vehicle imports and tariffs. Prepare your enterprise now to stay compliant and competitive in the changing automotive market.