Dream car plus 25% tariff? Ontario retiree's classic Mustang caught in trade war

The bright orange 1969 Ford Shelby Mustang is Cameron Gillespie's dream car and something he plans to keep for the rest of his life, making the $105,000 Cdn price tag worth it. 

But when the 65-year-old retired financial analyst began the process to import it from an Iowa car dealership to his Brantford, Ont., home in May, he learned he'd have to pay significantly more than expected due to the trade war between Canada and the U.S. 

Classic cars are among the U.S. goods Canada has imposed a 25 per cent tariff on, so including sales tax, Gillespie estimates he will be paying $30,000 in extra duties to the Canadian government. 

"This tariff is not impacting the Americans. It's impacting us individual Canadians," he said.  "I'm caught in the politics of two countries fighting with each other and it's the Canadian government who has implemented this tariff, not Donald Trump." 

In response to the U.S. president imposing a 25 per cent tariff on vehicles in April, Ottawa launched reciprocal tariffs, which it said would be in place until the Americans lift their levies. 

Meanwhile, Gillespie said, his Mustang remains parked at the Iowa dealership as he pushes for a tariff exemption — similar to what auto producers in Canada have. 

In May, the federal government announced these large companies would be provided with "relief from Canada's counter-tariffs" as long as they maintain domestic production. That means they are able to import "a certain quantity" of new vehicles from the U.S. without paying the extra 25 per cent. 

"It is intended to support continued automotive production and investment in Canada," said Department of Finance spokesperson Benoit Sabourin. 

No such relief was afforded to individual Canadians wishing to import classic or used cars from the U.S., the Department of Finance confirmed. The 25 per cent tariffs apply even to vehicles (like Gillespie's Mustang) that were previously duty free through the Canada-U.S.-Mexico Agreement on trade.

"These measures were not imposed lightly — they were necessary to respond to unjustified U.S. actions and to protect Canada's economic interests," said Sabourin. 

"The government continues to monitor the trade situation closely and will not hesitate to adjust its response, as required, to meet its policy objectives."

Gillespie said he contacted the Department of Finance, and his local Conservative member of Parliament has written a letter on his behalf, but he's heard nothing back. 

"I'm disappointed in our government, doing this to individuals," Gillespie said. "I don't want to lose [the car] but I don't want to pay an extra [$30,000] for something that doesn't make sense and shouldn't apply to begin with." 

Gillespie's Shelby Mustang is a high-performance, two-door convertible. The iconic cars were originally built by Shelby-American, a company founded by famous racing car driver and automotive designer Carroll Shelby, and then by Ford.