Tariff Troubles: Collision repair industry members weigh in on potential tariff impacts

Ottawa, Ontario – Although United States President Donald Trump has announced a 30-day break for the automotive sector from the threat of tariffs, the collision repair industry is still preparing for any outcome.

Collision Repair reached out to members from the industry to see how the tariffs will affect their businesses, as well as what they believe can be done to ensure continued success.

“Honestly, the U.S. tariffs are throwing us a bit of a curveball,” said Marc Martino, quality control manager, CSN Martino Brothers Collision. “We rely heavily on parts that either come from or pass through the U.S., and with the 25 percent tariffs now in play, it’s going to mess with our supply chain.”

“Even though we’re in Canada,” Martino continued, “a lot of our suppliers source from American manufacturers or distributors, so we’re expecting delays and higher costs to trickle down to our customers. Plus, there’s the chance that Canada’s retaliatory tariffs will push prices up on U.S.-made goods. It’s a bit of a waiting game to see how bad it gets, but we’re bracing ourselves.”

When considering the breakdown of Canadian versus American-made parts, Martino notes that it’s all about the specifics.

“We do use some Canadian-sourced parts—probably about 20 to 30 percent of our inventory, depending on the job. Things like certain fasteners, fluids or smaller components can come from local suppliers, which is great. But the reality is, most of the big-ticket items—things like bumpers, hoods or electronics—are either made in the U.S. or imported through U.S.-based companies. The auto industry is so integrated across the border that it’s tough to go fully Canadian.”

And, when looking at potential price increases, Martino believes that it’s almost a given for the industry.

“With the tariffs jacking up the cost of U.S.-sourced parts, our suppliers aren’t going to just eat that extra 25 percent; it will be passed on to our customers.”

“And,” Martino continued, “since we can’t always source alternatives quickly, or at all, we’ll likely see our costs go up. We’re already hearing whispers from some distributors about price hikes coming down the pipe. The problem could be similar to Covid, where you have 90 percent of the repairs completed and are waiting on the odd backordered part that could be months, or even worse, having difficulties sourcing a part needed because of closures to manufacturing plants.”

“Ultimately, I’d just say this whole tariff mess is a wake-up call for shops like ours,” Martino concluded. “We’ve been running lean for years, and now we’re getting hit from all sides—supply chain hiccups, higher costs and maybe even softer demand if customers tighten their belts. I'm especially worried about the smaller shops. These shops might not have the cushion to weather this.”

“For us, we’re looking at ways to adapt—maybe sourcing more from Canadian or other non-U.S. suppliers where we can, or getting creative with repairs. But it’s tough. Readers should know this isn’t just about car parts—it’s going to ripple out to everyone who drives in Toronto.”

Additionally, for Sia and Arash Mokhtari, co-owners of Simplicity Car Care Windsor, Windsor East and Windsor LaSalle, tariff concerns are further compounded by being located in an automotive hub within the province.

“As a border city and the automotive capital of Canada, the tariffs will have a significant effect on the job market for the City of Windsor. We are already seeing the effect from the threat of tariffs, as businesses have begun to remodel, with some even stopping future investment,” the brothers said.

“Many jobs in Windsor depend on automotive manufacturing and the factories that produce parts for automotive manufacturers, many of which do business with the U.S. If these factories are forced to reduce vehicle and parts production due to tariffs, fewer kilometres driven and a decline in collision repair volume, would directly impact our business and the collision repair industry as a whole,” the brothers continued.

“We believe that shops will begin to see a drop in claims volumes, cycle times increases, all leading to higher rental costs and severity increases.”

However, despite these challenges, the Mokhtari brothers are ready to take on the challenge.

“Where there is a challenge, there is an opportunity to be found,” the brothers concluded. “Collision centres will need to begin looking inside their organizations for ways to improve productivity and efficiency. This will assist them to come out of this better and stronger. It also provides an opportunity for smaller businesses to consolidate with larger businesses for a brighter future.”

“We sincerely hope that the Federal Government uses the revenue from the tariffs to assist business owners to endure these difficult times, as small businesses are the backbone of our nation. Canada, we are strong and this is a clear message for us to come together.”