New vehicle sales in Canada increased by an impressive 10 percent in April. According to consulting firm DesRosiers, 186,000 vehicles sold last month, compared to 167,000 for the same month in 2024.
According to experts who analyze the Canadian automotive industry, this significant increase in sales is largely attributable to consumers wanting to get out ahead of the expected increases in vehicle prices due to the trade war launched by the U.S.
Robert Karwell, director of the data and analysis division of J.D. Power Canada, said that in his view, “it’s all pull-ahead sales because of [U.S. President] Trump, the election and tariffs.” He added that several brands have encouraged consumers to “get your vehicle now before they get more expensive."
He pointed out that prices in April remained essentially the same, but that that is not expected to last much longer. Increases are coming in Canada.
Recall that the U.S. administration has imposed a 25-percent tariff on all vehicles imported from Canada and elsewhere. Prime Minister Mark Carney responded by imposing the same 25-percent tariff, although vehicles imported by manufacturers who assemble vehicles in Canada may be eligible for a rebate.
While there are also many exceptions regarding vehicles and components that comply with the Canada-United States-Mexico Agreement (CUSMA), broadly speaking, the industry is greatly affected.
Industry watchers will be looking in the coming months for price jumps, and especially how some models and manufacturers may be more affected than others.
That is, provided that the tariffs remain in place of course. This week, U.S. President Trump said bluntly during his face-to-face with PM Carney that there is nothing that could make the tariffs go away. But we’re familiar by now with the president’s capacity for suddenly changing his mind. We shall see.