AIA Canada, which represents the auto care industry in Canada, has issued a statement on the impact of expected tariffs on Canada’s auto care industry, providing a update on the current state of affairs.

Update: The statement from the association comes as news of a pause on tariffs to be levied on Mexico is emerging. Without detail, the pledging of 10,000 Mexican troops to the border and an agreement to stem the flow of U.S. firearms are at the core of this reported agreement.

Released at 11:17 a.m. on Monday February 3, the statement reads:

“On February 1, 2025, President Trump announced a 25 per cent tariff on all Canadian imports, with a 10 per cent tariff on energy, effective tomorrow. These measures threaten jobs, increase consumer costs, and disrupt the integrated North American supply chain, particularly in the vehicle manufacturing sector. In response, Prime Minister Trudeau announced 25 per cent retaliatory tariffs on $155 billion in U.S. imports, starting Tuesday with $30 billion in goods, followed by another $125 billion in 21 days. A full list of affected items is available here, including key auto care industry concerns such as retreaded/used rubber tires and various hand tools (handheld, pneumatic, hydraulic, and self-powered tools, drills, screwdrivers, vices, clamps, etc.).

“Provinces are also reacting:Ontario, British Columbia, Nova Scotia, and Quebec ordered wholesalers to remove U.S. alcohol from shelves. Ontario banned American companies from provincial contracts.Nova Scotia pledged to limit U.S. access to procurement contracts and review existing agreements.The Prime Minister spoke with President Trump this morning and will be speaking with him again at 3:00 p.m. The situation continues to evolve and there remains the possibility of additional retaliatory measures to come. ”

AIA Canada also provided an outlook on ongoing negotiations.

“Finance Minister Hon. Dominic Leblanc told CTV News that his conversations with Trump’s nominee for commerce secretary, Howard Lutnick, and others suggest that Canada will not be able to avoid the tariffs on Tuesday, and the next window for negotiations will be in March. The Automotive Industries Association of Canada (AIA Canada) remains in close contact with officials at the departments of Finance and Innovation, Science and Economic Development (ISED) and is actively monitoring developments. We stand in support of the countless Canadian industries impacted by these tariffs and will keep our members informed of any new concerns for the auto care sector as they arise.”

“We encourage members to reach out and share how these tariffs may affect them, so we can provide the most relevant and timely information,” concluded the statement.