Tariff fears driving up sales of non-U.S. vehicles on P.E.I., dealers say

Some dealerships on Prince Edward Island are seeing a boost in sales amid consumer concerns about how U.S. tariffs on the auto industry will affect vehicle prices. 

March sales at Centennial Nissan in Charlottetown were up 45 per cent from the same time period last year, said general manager Trevor Leeco.

"We probably had 12 to 15 customers directly affected — or at least thought they were going to be directly affected — that had a lease coming due in the next few months that pulled the trigger just because [they] didn't know about the what ifs," Leeco said. 

He said sales have been going so well that they've been taking inventory orders that other Nissan dealerships in the Maritimes are rejecting. 

Last Thursday, President Donald Trump imposed a 25 per cent tariff on foreign vehicles imported into the U.S. Next month, the same tariff will be applied to car parts.

It's unclear how the Trump administration will determine the U.S. content in those imports — in other words, the value of their American components. 

Prime Minister Mark Carney instituted retaliatory tariffs that same day, meaning parts and vehicles will face levies coming into Canada, too.

Nissan is one of the dealerships on P.E.I. that may be less affected by tariffs because many of the models it sells aren't made in the U.S. — the majority come from Japan and Mexico. 

"Vehicles going back and forth [across the U.S. border] could be hurt much more than an import coming from a different country," Leeco said. 

Islanders ditching American-made cars

At Charlottetown Mitsubishi, sales have been "fabulous," said owner and general manager Tammy Roach. 

"People are looking to support dealerships that aren't American-made, and we're fortunate that our vehicles come directly from Japan," Roach said, adding that her shop's inventory is shipped from Japan to Vancouver with no stops in between. 

Some dealers selling American-made models told CBC News that they're concerned about sales decreasing as drivers opt to ditch their current set of wheels. 

"They want to get rid of their American-made vehicles, so they're just looking to get a different VIN… that doesn't start with a 1," Roach said, referring to the vehicle identification number that indicates a car's country of origin, among other characteristics. 

"It seems like the imports perhaps are doing very well right now." 

While sales are going well and inventory is stocked up, Roach said the long-term effects on the economy and Canadians' pocketbooks are always in the back of her mind. 

"I'm a little hesitant to make any big business decisions right now, any big business changes," Roach said. 

"I've sort of been in a holding pattern and will remain so for a few months anyway just until we kind of know what's going on."