As political leaders look to protect the Canadian automotive industry from U.S. tariffs, proposed tax breaks might cover fewer cars than you might think.

On Thursday, Conservative Leader Pierre Poilievre announced he would cut the goods and services tax on new Canadian-made vehicles for as long as U.S. tariffs on Canadian cars remains. The party says the changes will save consumers $2,500 on a $50,000 vehicle.

Poilievre also called for the provinces to cut their own taxes on Canadian cars, which would add up to $7,500 in new savings on that same $50,000 vehicle.

“Everyone who’s looking to buy Canadian, to support Canadian workers will be able to save money,” Poilievre said Thursday.

“We will increase demand for Canadian-made cars and keep more workers on the job.”

The Conservative proposal echoes a similar announcement from NDP Leader Jagmeet Singh last month.

Singh pledged to waive the GST on Canadian-made vehicles, and said the cut would provide an added incentive for the government to buy Canadian vehicles.

“When we are purchasing vehicles at the federal level — thinking about the RCMP fleet, thinking about Canada Post and the entire fleet — we need to be buying entirely Canadian-made vehicles,” Singh told reporters on March 27.

But with auto parts often crossing the border several times in the manufacturing process, what truly counts as a Canadian car and how can consumers find out if a car for sale is Canadian?

According to the Canadian Vehicle Manufacturers’ Association (CVMA), 1.57 million vehicles were produced in Canada in 2023. The industry relies heavily on exports, with only 7.7 per cent of the vehicles produced remaining in Canada.

The Automobile Protection Association (APA) notes that vehicles made in Canada are assembled here, though parts can originate from other nations.

The APA states that just eight vehicles qualify as of March 2025:

• General Motors Co.’s Silverado 1500 pickup;
• Honda Motor Corp’s Civic and CR-V (both gas and hybrid);
• the Lexus NX and RX (both gas and hybrid);
• the Chrysler Pacifica, Chrysler Grand Caravan and Dodge Charger from Stellantis NV;
• the RAV4 from Toyota Motor Corp.

Additionally, all Canadian-made vehicles have a vehicle identification number (VIN) beginning with the number two and will have a maple leaf logo, known as the National Safety Mark, affixed to the car (generally on the inside of the driver’s side door).

Latest promises

• Conservative Leader Pierre Poilievre is promising to cut announced he would cut the goods and services tax for as long as U.S. President Donald Trump’s auto tariffs remain intact.
• NDP leader Jagmeet Singh announced a plan to close offshore tax loopholes, including ending tax agreements with known havens and requiring businesses to submit a business case for offshore accounts.
• The Bloc Québécois is calling for a Quebec delegation during trade discussions with the U.S.

Election headlines

• Oilpatch wish list for transforming energy policy makes its election debut
• Canada hits back with tariffs on U.S. vehicles as auto sector reels

• Email: bcousins@postmedia.com

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