Canadian Dealers Aim to Change Border Regulations to Import Cool Cars That Americans Can't Purchase | Carscoops

      If dealers have their say, Canada could gain greater access to a variety of vehicles from international markets.

      Canada might permit more imports from Europe, Japan, and Korea by modifying safety regulations.

      Dealers are advocating for regulatory autonomy to access models that Americans are currently unable to purchase or import.

      Aligning with EU standards could bypass U.S. tariffs and diminish American market dominance.

      Canadians might soon end up paying more for new vehicles, largely due to tariffs imposed by Donald Trump. The repercussions of U.S. trade policies are anticipated to affect the auto industry, and the Canadian Automotive Dealers Association (CADA) is proposing some bold, albeit unconventional, strategies to mitigate the impact.

      The primary suggestion? Altering the existing regulations to welcome cars from Europe, Japan, and Korea, which are presently excluded due to Canada’s compliance with U.S. rules. Such a change could not only transform the Canadian automotive market but also disrupt Trump’s tariff strategy.

      Currently, Canada’s vehicle safety and environmental standards are closely aligned with those of the United States. This regulatory alignment facilitates trade and manufacturing but presents a significant drawback: it prevents the import of vehicles designed to different standards, even if those vehicles are fully compliant in markets like the EU or Japan. Consequently, if a car isn’t optimized for the American market, it’s likely unavailable in Canada.

      "This means that Canadians are limited to vehicles and brands that Americans consider affordable and appealing, as Canada’s sales volume alone doesn’t justify the expenses associated with making vehicles compliant with North American standards," stated Tim Reuss, president of CADA.

      Reuss argues that this regulatory overhaul would broaden Canada’s trade possibilities and notes that many manufacturers, including those in the U.S., would likely support this initiative.

      “This action would signify an expansion of Canada’s trade opportunities, is supported by nearly all manufacturers, including those American, and would not be perceived as a retaliatory measure against any actions from the U.S. It’s an additional step we can take,” he expressed.

      Basically, Canada would enhance its capacity to import vehicles that are unavailable to Americans. Instead of paying tariffs on U.S.-made cars, Canada would utilize its free trade agreements with other countries, enabling it to avoid American vehicles.

      Could This Prompt U.S. Alignment?

      This significant shift might compel the U.S. to adopt EU safety standards in the future. As Reuss rightly noted, “Do you really think a vehicle that has been environmentally certified and deemed safe enough to drive on a German autobahn is not safe for Canadian roads?” The same could be applicable to American roads as well. If Canada advances with this proposal, it might lead many Americans to seek cars they currently cannot access.

      Additional Proposals

      As highlighted by Auto News, CADA has also suggested other measures to alleviate the impact of tariffs. These include abolishing EV mandates, preventing large banks from entering the vehicle leasing market, eliminating taxes on luxury vehicles, and reimbursing dealers who lost out on the iZEV incentives that ceased quicker than some expected.

      The next steps will rely on how the Canadian government decides to react. However, if even a few of these proposals gain momentum, they could lessen the burden of U.S. tariffs and enhance choices for Canadian consumers as a result.