New vehicle prices set to rise almost instantly in Sask. as a result of tariffs

The price of a new vehicle in Saskatchewan will go up almost immediately as a result of the tariffs trade war, according to Larry Heggs, Executive Director of the Saskatchewan Automobile Dealers Association.

U.S. President Donald Trump’s executive order to impose 25-per-cent across-the-board tariffs on Canadian goods, with a lower 10-per-cent levy on Canadian energy, came into effect on Tuesday.

Canada is immediately imposing 25 per cent retaliatory tariffs on $30 billion worth of American products, and will expand that to cover another $125 billion in U.S. goods in 21 days.

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Heggs said moving forward the cost of vehicles to consumers in Saskatchewan will depend on a number of things.

“This is almost an instant impact to them (consumers) as the costs go up … but also as supply might reduce — (that) is another factor that we need to face,” he said.

He explained that any tariffs on new vehicles will also depend on where they come from.

“There are manufacturers in other countries that obviously supply Canada. Canada has some assembly plants, as opposed to manufacturing plants, so that means that they ship the goods over and simply assemble the vehicles here.

“There’s some that import into the U.S. that come to Canada via the U.S. and we don’t know what that impact will be yet, honestly. There are some manufacturers that get delivered to Canada — Korea and Japan, for sure.”

Heggs said he doesn’t believe that potentially cheaper vehicles from Korea or Japan will affect the choices Saskatchewan consumers make too much.

“The vehicle needs to fit the consumer… so if you need a half-ton truck there’s no sense in buying a small car,” he said.

Used vehicle prices could also increase

At some point used vehicles could also go up in price, according to Heggs.

“I think there will be an increased demand for used vehicles and, of course, that’s all relative to what the impacts on new vehicles are. When there are new vehicles on the lot, the impact to the used vehicle market is less.

“So, if we run into a situation where there’s very few new vehicles on the lot in months to come … that will rise up the price of the used vehicle for sure,” he added.

Overall, though Heggs said the exact “sticker shock” consumers will feel remains a mystery.

“There will be some shared impact, for sure. The manufacturers are going to take some of the brunt, the dealer will take some of the brunt and then there will be some shared impact with the consumers.”

He said it’s a time for concern but not for panic, and as long as supply chains remain full and there’s no shortage.

The American International Automobile Dealers Association noted dealers already face rising vehicle and parts prices and high interest rates. "Tariffs could directly contribute to thousands of extra dollars on sticker prices," the group said. https://t.co/yk71NQi2LD

— AIADA (@AIADA_News) March 4, 2025

U.S. consumers are also feeling the effect of tariffs, the American International Automobile Dealers Association (AIADA) noted on Tuesday.

AIADA said American dealers are already facing rising vehicle and parts prices and high interest rates.

“Tariffs could directly contribute to thousands of extra dollars on sticker prices,” the group said.

Jim Bence, CEO of Hospitality Saskatchewan, said that up to 35 per cent of produce purchased by Saskatchewan restaurants comes from the United States. (Mia Holowaychuk/650 CKOM)

Restaurant costs in Saskatchewan also set to rise

Jim Bence, CEO of Hospitality Saskatchewan, expects the industry’s food and beverage sector to be hit the hardest by the trade war.

It’s not just Trump’s 25-per-cent tariffs on Canadian goods, but Canada’s retaliatory tariffs on American goods will drive up restaurant costs even more, he said.

Bence said that up to 35 per cent of produce purchased by Saskatchewan restaurants comes from the United States, and he expects operators will face about a $3,700 increase in monthly costs.

“Restaurants run on razor-thin margins,” Bence said. “This would really put a pinch on restaurants in particular.”

He said he had also heard concerns around consumer confidence from restaurant owners.

“We really are concerned that people will be like, ‘you know what? I think I’m going to keep my wallet in my jeans for the next little while’.”

Bence said less patrons in restaurants could also lead to employee layoffs.

While the hospitality industry prepares for potential effects, Bence wants to see the carbon tax removed to save the average restaurant owner thousands of dollars every month.

He has also pushed the province to pressure the federal government to extend the GST holiday, and suggested Saskatchewan should remove PST on restaurant meals.

“That would be a big help,” he said.

Increasing video lottery terminal (VLT) commissions is another suggestion Bence made to help restaurants stay afloat.

“We know that from the (Covid-19) pandemic that when the (indoor) dining started to take a hit, it was the VLTs that actually allowed us to continue to stay in business,” he said.

Bence said supporting the province’s local restaurants is more important now than ever before.

However, he did see a silver lining in the trade war — unique opportunity for Canada to attract travellers.

“It’s an opportunity for Canada to be able to say to the world ‘we’re the neighbors to the north, (and) we’re the good guys. Come and spend your time with us,’ ” Bence said.

— With files from 650 CKOM’s Mia Holowaychuk and Canadian Press

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