Canadians shopping for a new vehicle are increasingly nervous that trade turmoil will push sticker prices out of reach, according to a new KPMG Canada survey conducted in mid-November.
KPMG found 61 per cent of respondents plan to buy a new car within five years, but 76 per cent worry ongoing trade tensions and tariffs will make new vehicles unaffordable. The survey of 2,000 Canadians, conducted Nov. 7 to 17, 2025, also suggests buyers are watching where vehicles are built: 72 per cent say it’s very or somewhat important that their next vehicle is assembled or built in Canada.
“With U.S. tariffs disrupting the industry, Canadians in the market for a new vehicle are looking to the brands they trust at prices they can afford in models they want, and increasingly, on where those vehicles are built,” said Dave Power, Partner and National Automotive Sector Leader at KPMG in Canada, in the report.
Affordability remains tight. KPMG said 62 per cent won’t spend more than $50,000, with 39 per cent planning to spend $30,000 to $50,000 and 23 per cent aiming under $30,000. Nearly a quarter (23 per cent) said tariffs have already priced them out of the new-vehicle market.
Preparing for the Canada-U.S.-Mexico Agreement review, 72 per cent worry prices will rise if Canada loses protection under CUSMA. “If the CUSMA rules of origin change substantially to require even more North American content, this could have a dramatic impact on existing automotive supply chains,” said Joy Nott, Partner, Trade and Customs.
Dealers may need to keep a close eye on pricing sensitivity, supply-chain risk and “made in Canada” demand signals. With many buyers capping budgets and watching domestic assembly, inventory mix and clear, factual pricing conversations could matter as much as brand loyalty.
