(File photo/ paNOW Staff)

By Nigel Maxwell

Economic unrest

Car dealerships remain optimistic after one month pause on tariffs

Mar 5, 2025 | 4:48 PM

Prince Albert car dealerships remain cautiously optimistic following a back-and-forth this week from U.S. President Donald Trump regarding tariffs.

Brad Thibadeau, general manager at Lakeland Ford, told paNOW there’s been no information as to what’s going to happen down the line, adding prices and their ability to order cars has not changed.

“We’ve faced a number of challenges over the past five years and things have always kind of been OK. So we’re optimistically thinking a deal will happen and the challenges we could potentially be facing hopefully won’t be long term,” he said.

During a White House press briefing on Wednesday, after Trump’s speech to Congress, Press Secretary Karoline Leavitt read a statement from Trump saying he spoke with the big three auto dealers and they are going to get a one-month tariff exemption for any autos coming through the Canada-U.S.-Mexico Agreement on trade.

Thibadeau noted during the manufacturing process, parts made in Canada cross the border to get installed. Or in more complicated cases, a part made in Canada may be assembled further in the U.S., shipped to Mexico, returned to the U.S. and then installed in Canada

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That comment was echoed by Don Jones, partner and dealer principal at Anderson Motors who used the example of a Ford F-150.

“It goes across the border like six times, and that’s just a strut mount, and so that could be tariffed six times,” he said, adding the two economies and their supply chains are very much intertwined and so it’s impossible to figure out where the cars are made.

Jones explained if the tariffs do return, the resulting impact would be a breakdown of the supply chain, and an increase in prices for both vehicles and parts.

“So that will turn people into maybe used cars, then the used car market, just like in COVID, the prices will go up but thank goodness right now that hasn’t happened and it may not happen,” he said.

Wednesday’s announcement from Trump’s Press Secretary, was in response to pressure from the American Automobile Association.

Jones, who attended university in the United States and has friends on both sides of the border, said it is not fun to be a Canadian right now.

paNOW also reached to other vehicle dealerships in the city, but they declined comment.

—

nigel.maxwell@pattisonmedia.com

On Blue Sky: @nigelmaxwell.bsky.social

— with files from the Canadian Press