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← Tariff Schedule
HS 8703.23Critical

Motor vehicles for transport of persons, spark-ignition, cylinder capacity 1500–3000 cc

Chapter 87 — Vehicles and parts thereof|Section 232 (Auto)
Current tariff rate
25%
Prior rate
0% (CUSMA)
Canadian export value
$32B
CUSMA eligible
Yes (RVC 75%)
TARIFF DETAILS
Effective date
2025-04-03
Tariff type
Section 232 (Auto)
CUSMA INFORMATION
Eligibility
Eligible
RVC threshold
75%
SECTOR IMPACT

Ontario auto assembly plants face existential threat. An estimated 100,000+ direct and indirect jobs are at risk. US consumers face $5,000–$10,000 vehicle price increases.

NOTES

Ontario is the centre of Canadian auto assembly. Toyota, Honda, Ford, GM, and Stellantis operate assembly plants exporting primarily to the US. The 25% auto tariff threatens the foundation of Canada's manufacturing economy.

MITIGATION STRATEGIES

Actionable options for affected Canadian exporters

  1. 1

    CUSMA RVC optimization

  2. 2

    Supply chain restructuring

  3. 3

    US production facility

  4. 4

    Product redesign for tariff shift

INDUSTRIES AFFECTED BY THIS TARIFF

Canadian industries exposed to HS 8703.23 tariff changes

Automotive ManufacturingCritical
Manufacturing·92/100 impact
RELATED TARIFF CODES
8703.24Critical

Motor vehicles for transport of persons, spark-ignition, cylinder capacity > 3000 cc

25%Critical
8703.80Critical

Motor vehicles with electric motor for propulsion (BEVs)

25%Critical
8708.29Critical

Other parts and accessories of motor vehicle bodies

25%Critical

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