Canadian new-vehicle sales rose an estimated 3.7% in September, reaching about 163,000 units, according to DesRosiers Automotive Consultants (DAC). The firm described the result as “reasonable” in light of ongoing economic uncertainty and escalating U.S.–Canada trade tensions. The increase came against a weak September 2024 baseline and included one extra selling day, but sales still lagged behind historical levels of 172,000 in 2020 and a record 187,000 in 2017. Year-to-date, sales are up 4.5% to 1.47 million vehicles, though the sector is grappling with squeezed margins and pricing pressures as trade disputes continue.

Tariff costs have become a growing factor. Canadian vehicle and parts exports faced more than US$380 million in tariffs in July, after U.S. customs ended many USMCA exemptions under new Trump administration policies. Automakers are beginning to pass tariff-related costs to consumers, with model year 2026 vehicles already reflecting higher prices through increased sticker prices or delivery charges, according to AutoForecast Solutions. Competition remains intense, limiting how much automakers can raise prices, but cost pressures are expected to persist as the USMCA review approaches next year. DAC said September’s seasonally adjusted annual sales rate (SAAR) was 1.85 million, consistent with trends since tariff policies intensified in April.