How Tariffs Could Impact the RV Industry (Updated)

Updated 4/9/2025: This article has once again been updated, this time to reflect President Trump’s 90-day pause on all new tariffs, except for those on China. Moving forward, that country will now see a 125% tariff rate as the trade war continues to escalate.

President Trump’s decision to implement tariffs on Mexico, Canada, and China has dominated the news cycle in recent days, bringing a lot of fear, uncertainty, and doubt along with it. Some of that concern comes from a fundamental lack of understanding of what tariffs are and the impact they can have on the economy, especially should a broader trade war break out between the US and its allies and adversaries alike. So what do these tariffs mean for the country as a whole and the RV industry more specifically? Read on to find out.

What is a Tariff?

In the simplest of terms, a tariff is a tax placed on goods being imported into a country. Often, they are implemented as a means to raise funds for the government of the nation levying the tax or as a way to protect domestic manufacturers  and merchants from foreign competitors. And contrary to popular belief, the exporting country does not end up paying the increased price. Typically, a tariff results in the cost of goods going up, with the increase usually getting passed along to consumers.

In other words, if a 25% tax is levied on a product that costs $10, the price of that product increases by $2.50. More often than not, that means those goods will now sell for $12.50, although some manufacturers may find creative ways to keep costs down to try to minimize the impact on customers. The government collecting the tariff may also elect to exempt some goods from the taxes, allowing them to continue being sold at their original price.

In case you dozed off during your history classes back in junior high and high school, tariffs are not new. They’ve been around for centuries and have always been a way to generate revenue and/or punish other nations for trade inequalities between countries. Imposing tariffs almost always results in reciprocal taxes being levied by the other country, often leading to an increasingly escalating trade war that pushes prices up, weakens the economy, and results in unemployment, inflation, and scarcity of goods.

Low-level tariffs are a fact of life, with almost every country in the world imposing minor fees on imported goods. But in an age when global economies are more interdependent than ever before, high import taxes have largely fallen out of favor. That’s because implementing them usually results in as much harm at home as it does abroad. To the point that most modern politicians don’t usually consider using them as an actual tactic to achieve their economic policy goals.

Why is President Trump Implementing Tariffs?

If high tariffs are generally bad for the economy, why is President Trump implementing them? That’s a good question, because most economists agree that they are a bad idea. But the president sees tariffs as a way to pressure Canada, Mexico, and China into complying with his policy goals. For instance, Trump is using these import taxes as economic leverage to get Canada and Mexico to beef up security along their shared borders with the US. The hope is to cut down on illegal migrants crossing into the country, while also minimizing the inflow of illicit drugs and the outflow of illegal guns.

President Trump also hopes to use tariffs as a way to force some companies to bring manufacturing back to the US, including automakers, computer chip manufacturers, industrial goods, and more. That process can take years to accomplish, if it is even possible at all. With major manufacturing having moved largely abroad across a number of major industries, rebuilding factories and retraining labor is a challenging and expensive prospect. Even if the tariffs do convince some companies to resume manufacturing domestically, it’ll likely take years before that becomes a reality.

How Will Tariffs Impact the RV Industry?

America’s RV industry remains a vibrant and important part of the economy, with most of the manufacturing taking place right here in the US. That should help protect it against these tariffs to a degree, but not completely. Remember above when we mentioned an increasingly interdependent international economy? That extends to RV manufacturers, too. And while most of them do build their rigs in the country, they also import parts that are made in other parts of the world—most notably Canada, Mexico, and China. If those parts are hit with tariffs, it could cause prices to go up, resulting in higher sticker prices for RVs, too. Remember, these increased costs almost always get passed on to consumers.

Keep in mind, there are some RV manufacturers—like Northern Lite, Pleasure Way, and Leisure Travel Vans—who are based in Canada. Pricing for those models being shipped to the US could go up dramatically based on the imposed tariffs. The same could happen for US manufacturers shipping their vehicles to Canada and Mexico, do to those nations implement retaliatory tariffs of their own. Increased import taxes could result in a 10%-25% increase in prices depending on how the situation plays out in the coming weeks. Just how much prices will increase remains to be seen, but for comparison, some experts are predicting that car prices could go up by as much as $12,000.

As noted above, high tariffs can have a dramatic impact on the economy resulting in higher prices, stagnating growth, layoffs, and other issues. Those challenges could definitely leak into the RV industry, which often faces headwinds when the overall economy slows down. That could lead to a loss of jobs, temporary plant closures, reduced manufacturing, reduced inventories, and other difficulties. Considering the industry is just now getting back on its feet post-COVID, most manufacturers and dealerships would prefer to not have more barriers to their success put into place.

New Tariffs Implemented for Canada, Mexico, and China

After delaying the introduction of tariffs for a month back in February, President Trump has now moved ahead with implementing the import taxes on goods entering the US from Canada and Mexico. Starting March 4, 2025, products imported from those countries—which include fresh produce, automobiles, car parts, computers, and other goods— will have a 25% tax levied on them. That fee will also be placed on energy from Canada, which sends oil, natural gas, and electricity to a number of states.

Additionally, the Trump administration has doubled the tariffs it imposed on China in February, going from 10% to 20% on goods imported from that nation. Those products include a wide range of consumer electronics, lithium batteries, furniture, plastics, chemicals, and a wide range of other items. As the leading manufacturing country in the world, there are a lot of things made in China that are then shipped throughout the rest of the world.

Unsurprisingly, Canada, Mexico, and China have levied reciprocal tariffs on US goods, matching the US actions. Those nations are now raising the import tax on agricultural exports such as wheat, beef, pork, dairy products, and fruits and vegetables. China has also halted the import of lumber, soybeans, and fiber optics products, while Canada and Mexico are also targeting cars and trucks, construction equipment, plastics, and more.

Update (3/5/25): Just one day after implementing the new tariffs on Canada and Mexico, President Trump has decided to delay applying those tariffs on the auto industry for one month. The president has reportedly spoken to representatives from Ford, General Motors, and Stellantis, which helped lead to this decision. The new import taxes will now go into effect on April 2.

While it is impossible for the “Big Three” automakers to shift production to the US in such a short time line, the White House is hoping those companies will begin that process. The goal is to bring full production back to the country, rather than having some vehicles and parts produced elsewhere. Such a shift typically takes a year to accomplish, however, so it seems likely the new tariffs will go into effect in a few weeks.

In the meantime, if you’re in the market for a new car, truck, or SUV, you may want to get shopping.

Update (3/6/25): The Trump administration has once again paused most tariffs on Mexico and Canada, this time until April 2. The exemption is on all goods that are covered by the USMCA free trade treaty, which went into effect in July of 2020. The move comes after President Trump had phone calls with both Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau, which led to the decision to further delay the start of levying the new 25% import tax on goods. The BBC has analysis here and stayed tuned for further updates on this fast-changing situation.

Bracing For Impact

Now that the tariffs have officially been enacted, the RV industry is preparing for the challenges ahead. While it is unclear yet whether the vehicles themselves will directly be impacted by price hikes, the components used in their construction certainly will. Many parts used in making an RV are manufactured in Canada, Mexico, and China, and those goods are likely to get more expensive. That will almost certainly lead to RV manufacturers raising their prices to cover the increased costs.

Additionally, Canada is the leading importer of US-made RVs, with more than 29,000 units getting shipped north of the border on an annual basis. That accounts for roughly $1.7 billion in revenue, which could be directly impacted by the new tariffs and an impending trade war. Over the past year, the RV industry has made significant strides towards becoming a healthy, growing business once again. But those gains are likely to face strong headwinds due to these new economic pressures.

For now, RV manufacturers are continuing to look for ways to keep costs down and overcome the challenges brought on by the changing economic landscape. That could mean price increases are coming, but it could also mean those companies will revert to less expensive—and possibly lower quality—components and parts when building their vehicles. We’ll have to wait to see how things develop, as it will take some time for the full impact of the new tariffs to be felt.

On a broader economic level, tariffs will almost certainly make the price of consumer goods go up. Add in rising inflation, a sizeable drop in consumer confidence, and the possibility of a recession or depression on the horizon, and many people may find themselves scrambling to make ends meet. Historically speaking, the RV industry doesn’t do well in that kind of environment, which usually results in a drop in sales. That also has a ripple effect across the economy, with manufacturers cutting staff, production output, and other expenses to meet the shifting conditions. That could lead to some very difficult times ahead for some RV companies, particularly smaller brands that may struggle to weather the storm.

On a positive note, the situation surrounding the implementation of the tariffs has been very fluid and often changes quickly. If trade agreements can be reached between the countries involved, we could see those import taxes removed or significantly lowered. When a trade war breaks out between nations, usually no one wins. Hopefully, that will help stabilize the situation as quickly as possible before too much damage is done.

As usual, we’ll continue to update this article with new information as it comes our way.

New Tariffs on Aluminum and Steel

As of March 11, 2025, the Trump administration has now added a 25% tariff on the import of all aluminum and steel into the US, effective immediately. As with the previous tariffs implemented by the White House, these new import taxes will directly impact Canada and Mexico, although Brazil, South Korea, Japan, Germany, and other countries—including China—will feel the effects as well.

Of course, as with the other new tariffs, the goal is to increase the domestic production of steel and aluminum, creating new jobs and potentially stimulating the economy. When the first Trump administration imposed similar tariffs in 2018, the increased prices caused the import of those metals to drop significantly (CNN says 27%), but American steel production only rose by 7.5%, leaving a shortfall for use in manufacturing. It also caused prices for some goods—including automobiles, appliances, canned goods, and other items—to go up. Experts expect a similar impact this time around, especially as other countries and the European Union have threatened retaliatory tariffs in response.

So, how will these new tariffs impact the RV industry? Obviously, steel and aluminum are used in the manufacturing of most motorhomes and towables to some degree, which will impact the price of those vehicles for the foreseeable future. Manufacturers will no doubt be looking for new supplies to source those materials in an effort to keep prices as low as possible. But since these import taxes are now 25% across the board for any country shipping steel and aluminum to the US, the price of procurement will almost certainly go up. And as we’ve already stated above, those price increases are almost always passed on to consumers.

Unlike the previous round of tariffs imposed on Canada and Mexico—which were paused for 30 days—the import taxes on steel and aluminum are now in place. Add in the new 10% increased tariffs on all goods coming into the US from China, and we could see RV prices starting to nudge upwards in the weeks ahead. And should those paused tariffs go into effect in March, it is possible pricing will leap up even more. The good news is, this continues to be a rapidly evolving situation, so we could see some resolutions to these challenges in the days ahead. If not, be prepared to pay more for a wide variety of goods moving forward.

New Tariffs on Imported Automobiles and Parts

On March 26, President Trump announced that another round of new tariffs would go into effect starting April 3, this time levied against cars and car parts imported into the US. This will likely cause the price of most automobiles—both those made abroad and here at home—to increase in price, with most experts estimating a $5,000-$15,000 increase depending on the make and model. Almost every manufacturer will likely be impacted in some way, including Ford, GMC, Chevy, and Jeep.

The good news is, most of the RVs sold in the US are also manufactured here, which means much of the industry is safe from these vehicle import taxes. But, many of those manufacturers also import parts for use in building their vehicles, which means pricing could increase as a result. Exactly how much of the increased pricing can be mitigated remains to be seen, and will likely depend on the scale of the operation. Large companies will likely be able to weather the storm a bit better, having economics of scale to help offset at least some of the costs. That said, Winnebago is currently weighing the impact of tariffs on its 2026 model pricing.

The bad news is, tariffs will likely have an impact on the cost of repairing an RV and the time it takes to complete that work. Higher prices on parts will lead to more expensive repair work, and garages could stock fewer parts due to the cost. That means if your rig has to go into the shop in order to get some work done, expect to pay more and wait longer. Availability and turn-around time are likely to be impacted by these increased prices.

“Liberation Day” Brings Tariffs on Imported Goods From Numerous Countries

On April 2—dubbed “Liberation Day”—by the Trump Administration, the President announced another sweeping round of tariffs, this time impacting almost every country on the planet. The new import taxes place a baseline of 10% higher fees on all imports into the US, with higher duties being placed on some countries, including America’s biggest trading partners. For instance, the latest regulations raise tariffs on imports from China—which include everything from clothing and electronics to car parts and lithium-ion batteries—will be set at 54%. Meanwhile, the European Union was hit with a 20% tariff, while Indiana and Japan received 26% and 24% taxes, respectively. For a full rundown, click here.

Up until now, we’ve hedged our bets on how these increased tariffs would impact pricing on RVs and other goods. While it will still take some time to see the full impact, the breadth of these new taxes will certainly be felt. Expect everything from cars to fresh produce to computers and smartphones, and just about everything else, to go up in price in the coming weeks. Unless the President changes his mind and pulls back on these new duties, something that has happened multiple times already this year, Americans will soon be feeling the pinch on their pocketbooks.

There are other potential ways that we could see some of these tariffs get eliminated. For instance, four Republican senators—Rand Paul, Susan Collins, Mitch McConnell, and Lisa Murkowski—joined with Democrats to create a new resolution rescinding tariffs on Canadian imports. The resolution passed the Senate by a vote of 51 to 48 and will now move onto the House of Representatives, where it is expected to fail. But in this odd time of economic uncertainty, it is possible that GOP reps could cross party lines to vote in favor of the motion.

The latest round of tariffs will almost certainly bring challenges to the RV market. While the vast majority of RVs sold in the US are also made here, many of the components and appliances used in the manufacturing process come from abroad. And with many economists now forecasting a slowdown in the economy, the RV industry is likely facing serious headwinds in the months ahead. The good news is that most RVs themselves are exempt from the tariffs thanks to the US-Mexico-Canada Agreement (USMCA) from 2018. The bad news is, most RV and auto parts do not fall under that agreement, and will cost more moving forward.

Additionally, the President has eliminated de minimis exemptions, which allowed goods under $800 to be shipped into the US duty-free. Over half of those goods originate in China, where online sellers ship low-cost products directly to consumers. Last year, these exemptions covered $1.36 billion in goods, which will now be subject to import tariffs. This will cause a wide range of products to increase in price, with consumers and commercial companies ultimately paying the difference.

Update (4/4/25): In response to the latest round of tariffs from Washington, China has instituted a reciprocal 34% tax on all good from the US coming into that country. That includes agricultural products, machinery, chemicals, and a wide range of other items. What is most noteworthy about this response is that China—and other countries—now look like they are willing to engage in a trade war that will likely have a lasting impact on the global economy.

Update (4/9/25): President Trump has once again paused all of the new tariffs for 90 days, except for the ones placed on China. The Asian country, which has entered into  full-on trade war with the US, will now receive 125% tariffs moving forward, as both countries continue to play brinkmanship with the world’s economy. As the President has added increasingly higher tariffs on China, leaders there have done the same back at the US. And considering the amount of materials and goods that are produced there, it seems likely that price increases continue to be in the mix.

As usual, we’ll continue to update this article to reflect the changing conditions.