The response to the Trump Administration‘s tariff initiatives, among Canadian auto shop operators in the market for restoration and performance parts, runs the gamut from insomnia to indifference. Although there are reports of some businesses being little concerned about tariffs, those who we spoke to for this story said they were overall, apprehensive about where the tariff issue is really going and when it will be settled—likely beyond a 90-day timeline. 

High-cost sectors

The restoration and performance industry is a high-cost sector that is fraught with complicated challenges and one that significantly relies on the largesse of enthusiasts to stay in business. “Nobody wants to pay 25% more on whatever the project’s going to be,” says David Grainger, President and Co-owner of the Guild of Automotive Restorers, in Innisfil, Ont.

A heavy tariff, if it came to stay, could tilt more than one kind of customer away from spending money on a dream restoration and/or performance project. A lot of enthusiasts are marginal, Grainger says. A recession—or an extra cost, like a 25% tariff—is likely to deter “the Dodge Dart guy” from spending money he doesn’t have. A recession might not prevent a high-roller who has cashed in some shares from spending their play-money on a $500,000 project, but an extra 25% surcharge because of a tariff could make even this customer blink. 

Almost everyone has their limits, suggests Grainger, who notes that to restore and modify certain older Dodge Chargers can cost $500 to $600k “to bring it up to present day performance standards.”

Complicated situation

Getting quality parts for older cars involves enough headaches without adding tariffs. The list includes parts from overseas that, “only roughly resemble the original part for which they are a replacement;” wrong parts for which there will never be a buyer; and ridiculously long wait times—in one instance, seven months for Ferrari tires. And some parts costs have skyrocketed. Carburettors for older Jaguars, for example, which not long ago sold for $25 to $30 are now selling for as much as $250 to $500. Also, “Chrome for a ’57 Chevy can now cost $30 to $35k,” Grainger says.

He believes that if tariffs of 25% became permanent, it would kill off a large swath of the restoration and performance sector, especially some smaller outlets. The Guild, he says, would probably weather the storm because of its diversified operations. The firm typically has over 40 projects on the go at any one time, working on everything from a basic tune-up to restoring a 1930s Jaguar to its original show-room condition or “restore-modding” a ’70s muscle car. 

Confusion remains

While an April 29 presidential executive order indicates that, effective May 3, a 25% tariff on USMCA-compliant vehicles or parts applies only to non-North American-sourced content or components, uncertainty and, in some areas, confusion remains. “At certain times, hardly anyone knew what parts were going to be hit with tariffs,” says Joe DaSilva, Owner of DaSilva Racing, a specialty performance shop in Pickering, Ontario. 

The April 29 directive from the White House aimed at clarifying aspects of a March directive, which had left vendors and buyers across the continent’s auto sector unsure about exactly what products were subject to tariffs and how the tariffs should be applied. DaSilva says that in one instance a car buyer had to pay a $46,000 tariff on a 1968 Dodge Charger, only to find out later that, “The border guys were wrong, because there were no tariffs on that car.”

DaSilva, who says he has lost sleep because of tariffs, believes that small firms like his, with just seven employees, are vulnerable in today’s business climate. He says that the tariffs themselves, as well as the surrounding uncertainty, could further raise the odds against them. 

Noting that provincial Workers’ Compensation Boards provide financial rewards for a company’s injury-free years, he suggests that perhaps the Canada Revenue Agency might provide a similar incentive to small businesses that pay their tax bills on time. Like other auto specialists interviewed, he hopes that the federal government will consider other retaliatory measures besides tariffs.

Listening to the sector

Certainly, it seems that the U.S. Administration is listening to some segments of the continent’s automotive aftermarket sector. The April 29 directive from the White House came a few days after the Specialty Equipment Market Association (SEMA) sent the U.S. President a letter requesting some economic relief during the transitional period for companies re-shoring their manufacturing back to the U.S. Although many of SEMA’s 7,000 members are U.S.-based after-market manufacturers, many parts and materials come from overseas. With U.S. tariffs aimed at offshore-sourced steel and aluminum, SEMA warns in a discussion page about tariffs on its website that it may be necessary to discourage domestic steel and aluminum suppliers from taking advantage of the situation. 

Also on the same page, SEMA warns that, “Rapid changes cause paralysis and stagnation.” Although Sam Hutchinson, Owner of Calgary-based Epic Rod & Custom, doesn’t mention anything as dire, he says that “some suppliers have been hesitant to ship across the border if parts contain steel or aluminum. Also, exporters don’t want to be holding the bag for the extra cost of what is going to be charged as a tariff. There is almost no Canadian aftermarket manufacturing, so we must go to the U.S., China or Taiwan.”

He adds that even if a part is made or assembled in Canada, it’s likely that its aluminum and cast components are from China. “I hope that the customs brokerage understands the system.” 

Benefits on both sides?

Some in the specialty automotive sector believe that U.S. tariffs directed at offshore suppliers will benefit both customers and the sector’s manufacturers, mechanical and restoration specialists. “As overseas’ parts prices have gone way up because of tariffs, many clients now want a quality restored product not a cheaper overseas product that may fail in the future and cost more,” says Tony D’Antonio, who runs D’Antonio Automotive, a family-owned shop West Chester, Pennsylvania that provides repair and restoration services on classic, exotic and luxury vehicles, as well as Jeep outfitting.

Also, he notes, as overseas parts get pricier because of tariffs, there has been a shift from replacement to repair.

Jamie Robinson, Owner of Square One Classic Cars, runs his operation out of a modestly-sized shop in north west Edmonton, He specializes in custom fabrication and welding to restore antique cars and trucks as well as hot rods and muscle cars. Robinson also provides welding consultation and support to DIYers with their own restoration projects. 

Like others using aftermarket parts, he buys a lot from the U.S. “If you order something from the U.S., it’s best if you deal with a company with warehouses on both sides of the border,” he says. Sometimes, for parts, he works with a machinist to make or modify hard-to-find components.

Philosophical perspective

Robinson sounds a philosophical note on the subject of tariffs, saying that he and associates in the business have discussed the issue, but have as yet no firm plan. At the same time, he says that tariffs could wipe out his business and others like it. 

Perhaps his calm is underpinned by the decades of welding experience, and the 10 welding certificates he’s garnered over the years, which have no doubt left him prepared for just about any welding challenge around. Besides certificates, there’s been awards. In the case of a red 1938 Oldsmobile Opera Coupe, there were 10, he says, and shows me a photograph. 

Besides such highlights, there has been the occasional outlier of a project. When the aluminum housing box for a camera atop the Manulife office tower in downtown Edmonton was damaged in a storm, fixing it presented a challenge until someone had the bright idea of getting a welder with the diverse experience you could only obtain from working with ancient cars. So, they called Jamie Robinson, a classic car restorer.