Canadian car dealership expects price hikes soon over auto tariff dispute [Video]

The general manager of a car dealership in Dartmouth, N.S., says he expects the price of new vehicles to increase in less than 90 days as a result of an ongoing trade war with the United States.

On Thursday, a 25 per cent tariff went into effect on all foreign-made vehicles and auto parts entering the United States. In response, Canada imposed a counter-tariff of 25 per cent on all non-Canadian content of American vehicles arriving from south of the border, along with any American cars not compliant with the Canada-U.S.-Mexico (CUSMA) free-trade agreement.

“There’s no economist in the world that doesn’t know that input costs are going up. And the automobile business is a big ticket, small margin business. There’s no choice but to have a price increase in all manufacturers,” MacPhee said during an interview with Global News on Friday.

He said that 75 per cent of the …