Could it Cost Significantly More To Buy the Same Chevy Truck Built In Canada vs from Detroit?
Inquiring minds want to know 
Ask me again in January when and if the tariffs are actually enforced.
The tariff disaster escalates…
Suppose the Canadian truck costs twice as much, are you opposed to buying the U.S. assembled truck for some reason?
Looking at the trucks available at a Chevrolet dealer in Hartford CN, most are built in USA.
Of the first 20 lowest priced Silverado 1500, only 2 were assembled in Canada. (Look at the first digit of the VIN)
It depends on IF the new tariff actually goes into effect and IF GM continues to build the trucks in Canada or shifts assembly to another plant, say in Mexico, Thailand or wherever, or decides to discontinue selling the product in the US, .
More significant for us Motor Heads is that Small Block V8’s and the Corvette Dual Clutch transmissions are made in Canada.
Regardless, looking back on the “MAGA Tariffs Phase One”, when tariffs were placed on Canadian Whiskey and Canada retaliated against US Bourbon, the end result was lost sales and layoffs in Kentucky and Tennessee.
A classic “P***ing Contest” and it’s always the “poor slobs” like us who get all wet.
This is way more than some expensive trucks. Lots of car-related parts involved, installed in many cars assembled in the US. A huge mess.
Based on dealer inventory, production location has already changed;
One local dealer has 102 Chevrolet trucks, zero 1500 series and six 2500 series from Canada. The majority are assembled in USA. Manufactures have had more than a year to shift production to the states.
There are other reasons for reduced demand from U.S. distilleries:
In 2025, 54% of U.S. adults reported consuming alcohol, the lowest rate in nearly 90 years of Gallup tracking. This represents a continued decline from 62% in 2024 and 58% in 2023, with sharper decreases among women (51%) and young adults (50%) as health concerns about alcohol became more widespread.
Lots of projecting what might happen.
It was projected the Iran conflict would affect our motor oil and … nuthin
Has anybody not been able to get their preferred synthetic oil? I have had no trouble and I buy fancy oils.
All the shelves I can see are full of product. Same for Amazon and specialty sites.
50% tariffs, if they hold, are an economic drag on a weak economy. The last thing we need. And the Iran war has increased gas/diesel prices easy $1/gallon, X 12 million barrels a day X 42 gallons/barrel X 180 days = $84 billion down the drain, another pointless drag on the economy.
And lube oil prices certainly have gone up:
Shifting implies that there is sufficient existing capacity to produce all parts and vehicles in the US. I doubt that exists. Building new plants costs at least $1 billion. Add to that the cost of moving production from underutilized factories and the studies needed to make the moves efficient. Also, one year is not nearly enough time to provide the equipment for the updated production plan. And this doesn’t even count the outside suppliers. Since it’s a multibillion dollar undertaking, many, if not most, of the companies faced with this decision decide to pay the tariff. The believe it’s cheaper than making the moves and alienating customers, employees, and the general public enough to possibly never sell products there again.
Honda civic and crv, Toyota Rav4 are currently built in Canada among other places. Rav4 production is in the US and Toyota intends to up production there. Part of why dealers can have a 4mo wait for Rav4.
Manufacturers could choose to absorb the tariff short term but we’ll see what happens.
I don’t believe there are facilities to build half the vehicles in the states, but the question was about the Silverado. I would be surprised if U.S. manufacturing capacity could not be increased by at least 10%, and the same for other manufactures with manufacturing in three locations.
There are many vehicle that are only assembled in Japan or Europe and that won’t change, it isn’t economical to build a Prius factory in the U.S. for example.
And especially if they hold on both sides of the 49th parallel.
Why not?
Toyota has 14 plants in the US building many models including hybrids. Just not the Prius, so far. It builds the Corolla hybrid as well as the Sienna, Camry and Highlander hybrids in the US. So it seems economical to build hybrids in the US.
When companies factor in the added costs of tariffs and shipping, it makes sense to build and sell locally wherever possible. Especially relevant in today’s business climate…
I agree. Toyota sells 500K+ Prius in the US. And 500K+ in Europe. Each continent would seem to support an assembly plant. There were some rumblings a few years ago about building a plant in the US but it didn’t happen.
Exactly.
Also, consider that shipping long distance has other costs aside from the fuel and method of conveyance. Compressing the cash cycle is big deal for companies. Every day after that car has been built that it is not sold to a customer is wasted. Sitting on a container ship for 3 weeks is lost cash flow opportunity…
Exactly. If you already have a manufacturing presence here in the US you might be able to shift production to the US. But many don’t. Many companies have stopped all production here in the US and shifted it overseas. The cost to ramp up here in the US could be too costly. And lets not forget the FACT that there’s a manufacturing man-power shortage in certain sectors.
Realistically, and logistically, it makes no sense that every foreign manufacturer who wants to sell their goods in the U.S. must make them there.
What if every country that wanted to sell stuff to the Philippines had to manufacture or assemble it there.?
Or sell to European nations, or Africa, etc?
Now do you all see the preposterousness of it?
G o d (How dare you censor?) blessed all the nations with different resources and talents, and we should all buy and sell from each other without envy or other reservations.