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Business

Trump's Canada tariffs take aim at America's favorite cars

Business Insider ·
Trump's Canada tariffs take aim at America's favorite cars

Canada plays a unique role in America's car business: it helps build some of the US's favorite vehicles.

Chevrolet/Toyota On Monday, President Donald Trump threatened tariffs of 50% on cars imported from Canada.

America's second-, third, and fourth-best-selling vehicles rely on assembly plants in Canada.

The White House tells Business Insider there's a simple solution: Build in the US.

Americans love SUVs and full-size pickups.

President Donald Trump's latest auto tariffs would hit the US's bestsellers with remarkable precision.

In a Monday Truth Social post, the President threatened 50% tariffs on all Canadian-made cars and trucks.

The tariffs, which could go into effect on January 1, 2027, will also hit imported steel and automotive parts.

America's second-, third-, and fourth-best-selling vehicles in 2025 — the Chevy Silverado, the Toyota RAV4, and the Honda CR-V — all rely on production plants in Canada.

Last year's best-selling vehicle, Ford's F-Series, has also been scheduled to begin Canadian assembly of its Super Duty trucks later this year.

The fifth-best-selling vehicle in the US last year, the Ram 1500, has a significant portion of its parts assembly in Canada, too.

"The impact of unworkable tariffs would be felt well beyond Canadian assembly plants," Erin Keating, an executive analyst at Cox Automotive, told Business Insider.

"Some of America's most popular vehicles are built in Canada." Automakers have escape routes — but they aren't simple Rows of newly-assembled Honda vehicles are parked outside the Alliston, Ontario, plant.

Cole BURSTON / AFP via Getty Images Tariff exposure would not be evenly distributed across every vehicle.

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