The topic of tariffs and their impact on global trade has been a hot-button issue in recent years. Among the industries affected, auto manufacturing stands out due to its significance in both the Canadian and U.S. economies. When tariffs are imposed, they increase the cost of importing and exporting goods, ultimately driving up prices for consumers. This dynamic is particularly concerning for the auto industry, where even small cost increases can have ripple effects on affordability and demand.

If tariffs are enforced on automobiles and automotive parts, car prices in Canada and the U.S. are expected to rise. These additional costs are typically passed down to consumers, making vehicles less affordable. For many North Americans, particularly young people, owning a car is already a financial challenge due to rising costs of living, stagnant wages, and increasing auto loan interest rates. Adding tariffs to the mix would likely make car ownership even more inaccessible.

This potential price hike comes at a time when the younger generation in North America is already reconsidering the value of owning a car. In urban centers, where traffic congestion and parking costs are major concerns, many young people are opting for alternative modes of transportation. The rise of ride-sharing services like Uber and Lyft, combined with improved public transit options and a growing focus on environmental sustainability, has made car ownership seem less appealing. Biking, electric scooters, and even car-sharing services have gained popularity as convenient, cost-effective options. Even in suburban areas like Richmond Hill, where cars are traditionally seen as the default mode of transportation, young people are increasingly embracing this trend—mirroring the behaviour of those in downtown Toronto.

The imposition of tariffs may accelerate this trend. Faced with higher prices, younger consumers could decide to forgo car ownership entirely. Instead, they may lean more heavily on technology-driven mobility solutions that provide convenience without the financial burden of a car loan, insurance, and maintenance costs. This shift could have profound implications for the automotive industry, prompting manufacturers to innovate in areas like electric and autonomous vehicles while exploring mobility-as-a-service models.

On a broader scale, the long-term impact of tariffs could reshape the landscape of transportation in North America. The auto industry may need to adapt to a new reality where consumers prioritize flexibility and sustainability over ownership. Companies that successfully pivot to provide services rather than products could thrive, while traditional manufacturers that fail to evolve may struggle.

Ultimately, the question is whether tariffs will be the tipping point that accelerates the decline of car ownership among young people in North America. If the trend continues, it could signal a paradigm shift in how society views transportation, moving away from the personal vehicle as a symbol of freedom and independence toward a model focused on shared, efficient, and environmentally friendly options. This evolution could redefine how we move, live, and interact in the years to come.