The director general of an automotive dealer in Dartmouth, NS, says that he expects the price of new vehicles to increase in less than 90 days due to an ongoing business war with the United States.
On Thursday, a 25% rate entered into force on all vehicles and automotive parts made abroad entering the United States. In response, Canada has imposed a 25% counter-level on all non-Canadian content from American vehicles arriving from the south of the border, as well as American cars that do not comply with the Canada-Mexican (CUSMA) free trade agreement.
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“There is no economist in the world who does not know that input costs are increasing. And automotive activity is a big and small margin business. There is no choice but to have a price increase in all manufacturers,” George Macphee said in an interview with Global News on Friday.
He said 75% of the cars in his Macphee Ford exhibition hall are made south of the border – but most of the vehicle parts come from Canada – leaving the retailers in disarray when the impact is calculated.
“When you get vehicle parts and parts, made in other parts of the world and assembled in the United States, what does that mean?”
Macphee says that it will not take long before his exhibition hall vehicles were affected by the prices.
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