Analysis of Potential Canadian Tariff’s Impact on Motorcoach Industry | American Bus Association

Analysis of Potential Canadian Tariff’s Impact on Motorcoach Industry

Potential Impact of a Tariff Increase on US/Canada Motorcoach Trade

American Bus Association Foundation (ABAF) commissioned research to explore the potential impact Canadian tariffs could have on the U.S. and Canada motorcoach industries.

Photo courtesy MCI
Photo courtesy Prevost

Executive Summary

  • About the Report: Oxford Economics prepared a detailed analysis of the expected economic impact of the potential 25% tariff on Canadian imports. The report illustrates how the imposition of tariffs on the motorcoach industry would result in negative economic impacts, including decreased business sales, job losses, lower wages, a decline in GDP, and an overall net loss in tax revenue.

  • Key Highlights:
    • Reduced motorcoach activity would result in less motorcoach revenue and associated spending in the U.S.
      • Loss of $3.1 billion in business sales in 2026
      • Loss of 14,460 U.S. jobs
    • The five-year (2026-2030) impact of a potential 25% tariff increase imposed on Canadian imports would lead to the loss of:
      • $17.4 billion in U.S. business sales 
      • 75,340 U.S. jobs
      • $4.6 billion in wages and salaries. 
      • $235.6 million Federal tax revenue loss

Citation

  • How to Cite This Report: American Bus Association. (2025). Potential Impact of a Tariff Increase on US/Canada Motorcoach Trade. Retrieved from https://www.buses.org/aba-foundation/proposed-canada-tariff-motorcoach-industry-impact/.
  • Report Author: Oxford Economics.
  • Sponsored by: American Bus Association Foundation.
  • Contact information: For inquiries, email research@buses.org or call (202) 218-7227.

Methodology

  • Multiple sources of information were used to construct models to estimate the potential economic impacts for various scenarios discussed in this study. See the report’s methodology section for specifics.

Related Resources

Download the Full Report (PDF)

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The American Bus Association serves a thriving industry that provides nearly 600 million passenger trips annually on charters, tours, scheduled service, and shuttles. Membership in ABA includes motorcoach operators, tour operators, tourism-related organizations, and products and service suppliers.

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