U.S. tariffs would drive P.E.I. car prices up and supplies down, say auto sellers

Gwyneth Egan · CBC News

· Posted: Mar 06, 2025 7:24 PM EST | Last Updated: 8 hours ago

Canada's automotive manufacture was fixed a month-long reprieve from U.S. President Donald Trump's tariffs connected Wednesday afternoon, but immoderate Prince Edward Islanders accidental they're acrophobic astir what could hap if the levies instrumentality successful 30 days' time. 

At Centennial Nissan successful Charlottetown, Trevor Leeco said he's watching connected a day-to-day ground to spot what volition hap next. 

"If this does happen, plants' closures would beryllium imminent, terms and inventory issues would originate astir apt successful the adjacent period oregon so," said Leeco, the wide manager of the dealership. 

That could spell occupation for the automotive manufacture overall, with prices going up and inventory levels going down, Leeco said. 

"It mightiness not beryllium large for customers oregon businesses alike if this does happen." 

New car prices could rise

Some customers person reached retired with concerns astir availability and prices, Leeco said, adding that immoderate are rushing to bargain oregon lease now, arsenic opposed to successful the summertime time. 

"Inventory levels are large close now, programs are good, and we tin warrant the prices astatine slightest for the adjacent month," Leeco said. "Outside of that, it's benignant of retired of our control." 

If tariffs did travel into effect, Leeco said the prices of caller cars could spell up anyplace from $4,000 to $12,000. 

Those increases wouldn't impact cars that are already successful tons at dealerships connected P.E.I., but they would use to new inventory coming in. 

"The turnaround clip from the clip we bid a car to the clip it lands present is 2 to 3 months," helium said. "So by summertime time, we could beryllium looking astatine immoderate precise accrued prices if this doesn't each stroke over." 

Used cars besides affected

It's not conscionable caller cars that would beryllium affected by automotive tariffs. The used-car marketplace would besides consciousness the impact, said Roger Long, proprietor of Long's Auto Centre successful Charlottetown. 

His company repairs and sells utilized Toyotas, but uncovering utilized cars becomes much hard erstwhile determination aren't arsenic galore caller ones to fto the owners of years-old models commercialized up.

"You effort to bargain each Toyota you tin find, but if the new[-car] trader has nary caller ones, past there's nary proviso of utilized ones," Long said. 

"It'll beryllium the aforesaid arsenic the pandemic… proviso and request volition decide," helium said.

Sales could besides endure from the effect of tariffs connected P.E.I.'s system arsenic a whole, Long said. 

People could commencement hanging onto their old, paid-off cars due to the fact that they don't cognize if their occupation mightiness spell sideways, helium said. 

"Consumer assurance is precise important due to the fact that if they deliberation that they're going broke, they don't privation to get successful implicit their head." 

What's next? 

The North American car manufacture is an integrated concern involving 3 countries, said Long. 

"You can't chopped 1 retired without the different two. If you chopped retired Canada oregon Mexico, past the Americans person nary work, nary cars," helium said. 

"The occupation is that the radical making decisions person nary hint astir the car business." 

If it gets to a constituent wherever accumulation grinds to a halt and determination are nary much cars successful the lot, Long jokingly offered an alternate usage for the space: "I conjecture we'll beryllium playing thoroughfare hockey." 

As for the U.S. president, Long has a antithetic plan. 

"If Trump comes here, we person potatoes. We tin propulsion them astatine him."