Tariff Question - is it effecting Can to US imports? (9 Viewers)

[cruiserpilot]

I had a brunch with friends yesterday. Got into the topic of importing trucks from all over. Middle East vs Europe, taxes and duties etc.
I've been looking for a bit just having fun more than anything. But there was one who seemed fairly certain that the US now has import
tariff on used vehicles coming from Canada. Does anyone know anything about this? Is it even real? I know from a few years ago that
the Blaine crossing imported 3-4 cars a day at times. I know lots of the coveted Canadian diesels have crossed going south. So if I was
to downsize by a truck or two is there a new issue here? Can US guys fill me in?

 

[AdamFire]

Yes vehicle import tariffs are alive and well. Unless the vehicles original country of origin is USA.

 

[cruiserpilot]

I'm aware of the 25 yr rule. That hasn't changed. Is there actual monetary tariff on buyer from US to buy Canadian
vehicles aside from already in place state taxes etc?

 

[AdamFire]

I just answered your question. There are monetary tariffs on vehicles coming from Canada into the US.

 

[PAToyota]

Yep - 25% tariff on Canadian vehicles and parts imported into the US - added to the other taxes and other import fees.

 

[cruiserpilot]

Yep - 25% tariff on Canadian vehicles and parts imported into the US - added to the other taxes and other import fees.

Wow, so that's on the buyer?

 

[AdamFire]

When the buyer does their import paperwork it is bundled into the import packet along with their other fees for customs. You could however offer to reimburse the buyer 25%, but that would most likely not pan out financially for you.

 

[cruiserpilot]

Selling a truck for 30K then giving 25% back? The government takes the 25%, not the seller, or am I more confused than
I know I am

 

[AdamFire]

Whoever is importing the vehicle has to pay 25% of the vehicles sale price to customs (the government).

This raises the cost for the buyer. There is no way around it.

 

[cruiserpilot]

I’m just glad to hear the number in percentage. That’s what I was looking for at the beginning. So selling is going to be problematic. My sympathies lie with people who would like to import something cool but this will put the dream out of reach. So the only ones to benefit are the wealthy who have the extra.

 

[PAToyota]

Wow, so that's on the buyer?

Ultimately the buyer pays for it - one way or another. The seller could pay some of it, but that eats into their profit.

And it isn't like anyone else is going to pay for it. A certain element tries to make it sound like the foreign government is paying for it. Really? Think about it... A Canadian citizen/company sells something to a US citizen/company for $100. A 25% tariff is put on it. So $25 goes to the US government. Either the Canadian citizen/company reduces their price to $75 (**) so the American citizen/company still pays $100 for it or the American citizen/company has to pay $125 to cover the purchase price and tariff. It's not like the Canadian government is going to go and pay the $25 for every $100 their citizens/companies sell.

** : Yeah, I know the math isn't quite right because lowering the price would lower the tariff, but for simplicity sake... Of course there are also all the other taxes, duties, fees, and such as well.