The Impacts of U.S. Tariffs on Yama Vans and the RV Industry

Trade wars aren't exactly what you picture when planning your next great adventure, yet here we are.

With new tariffs on the table, there are some changes worth keeping an eye on, but savvy buyers still have great options. Let's break it down.

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Understanding the U.S. & Canadian Tariffs

In early February 2025, the U.S. announced a 25% tariff on imports from Canada and Mexico, originally set to take effect on February 4, 2025. However, following negotiations between President Trump and Prime Minister Trudeau, implementation was paused for 30 days, delaying enforcement until March 4, 2025.

To clarify what these tariffs actually mean:

• The U.S. Tariff (25% on Canadian and Mexican Goods): This does not mean Canadian and Mexican exporters pay more. Instead, American businesses and consumers will bear the cost - paying 25% more for Canadian-made goods, including RVs.
• The Canadian Retaliatory Tariff (25% on U.S. Goods): Canada has proposed its own 25% tariff on U.S. imports, which would raise costs for Canadians purchasing U.S.-made RVs and components. This is particularly significant given that most RVs sold in Canada are manufactured in the U.S.

With the tariffs currently on hold until March 4, 2025, the full impact remains uncertain. However, if implemented, they could significantly affect RV buyers on both sides of the border.

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1. Increased Production Costs

A significant portion of materials and components used in RV manufacturing come from the U.S., meaning a 25% tariff would increase costs for Canadian RV manufacturers, including Yama Vans. Higher material costs could lead to increased production expenses, potentially impacting pricing.

However, U.S.-made RVs will also face rising costs due to tariffs on Mexican imports. Since many RV components and materials come from Mexico, the price hike will affect not only U.S. RVs but also Canadian buyers who purchase American-made RVs.

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2. Potential Supply Chain Disruptions

To mitigate cost increases, alternative suppliers outside the U.S. may need to be considered, but this could introduce delays and logistical challenges. Additionally, with companies rushing to secure materials before the tariffs take effect, we could see shipping bottlenecks, impacting delivery timelines across the industry.

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3. Impact on Canadian RV Buyers

• Rising U.S. RV Prices: Since most RVs sold in Canada are U.S.-made, these tariffs would increase costs significantly for Canadian buyers.
• Canadian-Made Advantage: While material costs may rise, Canadian buyers won't face additional import tariffs, making a Canadian-built RV a more practical choice.
• Shifting Preferences: With U.S. RVs becoming more expensive, more Canadian buyers may look to high-quality, locally built alternatives like Yama Vans.

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4. Impact on U.S. RV Buyers

• Favourable Exchange Rate: The Canadian dollar has been depreciating due to trade uncertainty, making Canadian-made RVs more cost-effective for American buyers.
• Offsetting Tariff Costs: Even with a 25% tariff, the weak CAD helps to absorb some of the additional cost, keeping Canadian-built RVs competitive in the U.S. market.
• Increased Interest in Canadian RVs: With the U.S. RV prices rising due to both Mexican tariffs and higher supply chain costs, more American buyers will look to Canada as a more affordable option for high-quality, innovative RVs.

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5. Duties vs. Tariffs - How This Affects U.S. Buyers at the Border

In international trade, duties and tariffs both impose taxes on imported goods but serve different purposes:

• Duties are standard taxes based on value, weight, or quantity. U.S. buyers currently pay a 2.5% import duty when bringing a Canadian-built Yama Van into the U.S.
• Tariffs are additional government-imposed taxes, often used in trade disputes.

If the 25% tariff replaces the standard 2.5% duty, U.S. buyers could face a substantial increase in import costs. However, it remains unclear whether this tariff will be in addition to or instead of the existing duty.

Since the tariffs are paused until March 4, 2025, we will continue to monitor updates and keep buyers informed about how this could affect their final purchase price.

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Final Thoughts

While the full impact of these tariffs are still uncertain, here's what we do know:

1. RV prices across North America will rise if tariffs are enforced - for both U.S.-made and Canadian-made RVs.
2. For U.S. buyers, the weak Canadian dollar will offset some tariff costs, making Canadian-built RVs a competitive option despite the increase.
3. For Canadian buyers, rising U.S. RV prices will make Canadian-built options even more attractive, especially if retaliatory tariffs are enforced.
4. High-quality, four-season builds hold their value. A well-built adventure van is a long-term investment, designed to last through changing market conditions. Yama Vans are built to go the distance, and when the time comes to upgrade or move on, our Pre-Loved Program helps owners retain value while making room for their next adventure.
5. Choosing the right partner matters. With trade policies shifting, working with an RV or Van Conversion company that stays ahead of industry changes, builds high-quality products, and provides strong after-sales support is more important than ever. Tariffs may come and go, but your van - and your adventures - will last for years to come.

Yama Vans is committed to staying informed and guiding our customers through these changes. We'll continue to provide updates and ensure that no matter what happens, we're building adventure-ready vans that help you explore further - without the stress of trade politics getting in the way.