The Canada / Mexico Trade Tariffs Resource Hub

The Trump administration announced new tariffs on imports from Canada and Mexico, citing national security concerns related to migration and drug trafficking. Effective March 4, 2025, a 25% tariff will apply to most imports from both countries, with a lower 10% tariff on Canadian energy products. 

These tariffs override existing free trade provisions in the United States-Mexico-Canada Agreement (USMCA). In response, Canada and Mexico have pledged retaliatory tariffs on U.S. goods, though specific measures have yet to be confirmed. 

Impact of Tariffs on the U.S. Economy and Motorcoach Industry

Manufacturing Supply Chain

Motorcoach original equipment manufacturers (OEMs) are primarily based in Canada and Europe, with no producers in the United States since the 1980s. While many motorcoaches are imported, critical components such as engines, transmissions, and electrical systems are produced in the U.S. Imposing tariffs on imported vehicles would disrupt the supply chain, increasing costs and negatively impacting domestic manufacturers and consumers alike.

Higher Costs for Operators and Consumers

Increased Operating Costs: Tariffs would raise the cost of new vehicles and components, making it more expensive for operators to maintain or grow their fleets.

Price Hikes for Consumers: Higher operating costs would be passed on to consumers, making motorcoach travel less affordable for families, tourists, and commuters. This would particularly impact rural and underserved communities relying on affordable transportation options.

Innovation and Sustainability Stalled

Hindrance to Fleet Modernization: Tariffs would discourage operators from investing in newer, safer, and more efficient vehicles, delaying advancements in safety, fuel efficiency, and emissions reduction.

Environmental Backslide: Motorcoaches are the most efficient form of mass transportation, removing up to 30 cars from the road per trip. Increased costs could reduce ridership, resulting in higher emissions and more congestion.

Threat to Essential Services

Disrupted Connectivity: Motorcoaches provide nearly 400 million passenger trips annually, connecting urban and rural areas, including communities without access to airports or rail lines. Tariffs could jeopardize these critical services.

Emergency Preparedness Undermined: Motorcoaches play a vital role in military transportation and emergency evacuations during natural disasters. Reduced fleet availability could hinder these essential operations.

Imposing tariffs on motorcoaches and components would have a ripple effect, harming the economy, the motorcoach industry, and millions of consumers.