Several car dealerships on Prince Edward Island are experiencing an increase in sales due to consumers' worries over how U.S. tariffs on the automotive sector might impact vehicle pricing.
In March, Centennial Nissan in Charlottetown saw a 45 percent increase in sales compared to the previous year, reported general manager Trevor Leeco.
Leeco mentioned that approximately 12 to 15 customers who believed themselves to be directly impacted decided to act prematurely. These customers had leases expiring soon and chose to take action out of uncertainty regarding potential unknowns.
He mentioned that sales have been progressing exceptionally well to the point where they're accepting inventory orders that other Nissan dealerships in the Maritime region are turning down.
On the previous Thursday, President Donald Trump implemented a 25 percent duty On imported foreign vehicles in the U.S., next month, the same tariff will also apply to automobile components.
It remains uncertain how the Trump administration plans to assess the U.S. content within these imports—that is, the worth of their American parts.
Prime Minister Mark Carney implemented retaliatory tariffs on the same day, which means parts and vehicles entering Canada will also be subject to these duties.
One of the dealerships on Prince Edward Island that might experience lesser impact from tariffs is Nissan since many of the models they sell aren’t produced in the United States; most originate from Japan and Mexico instead.
"Cars traveling back and forth across the U.S. border might get affected far more than imports originating from another nation," Leeco stated.
Islanders ditching American-made cars
At Charlottetown Mitsubishi, sales have been "remarkable," according to owner and general manager Tammy Roach.
"Individuals prefer backing dealerships that focus on non-American brands, and we're lucky because our cars originate directly from Japan," Roach stated, noting that her store’s stock travels directly from Japan to Vancouver without any intermediate stops.
Several dealers selling vehicles manufactured in America have expressed concerns to CBC News that they might see a decline in sales as drivers choose to replace their present cars less frequently.
Roach mentioned that they plan to dispose of their American-manufactured cars and are simply aiming for a new Vehicle Identification Number (VIN) — one that does not begin with a 1. The VIN specifies various details about the car, including its country of manufacture.
The imports appear to be performing quite well at present.
Even though sales are strong and stock levels are adequate, Roach mentioned that she constantly keeps an eye on the potential long-term impacts on the economy and the financial situations of Canadians.
Roach expressed some reservation about making significant business moves or major alterations at this time.
I've essentially been in a waiting phase and will continue to be so for several months, at least until things settle down a bit and we understand the situation better.