A Wishlist for Tariff-Free Foreign Cars We’d Love to See in Canada

With the Canadian federal government's decision in April 2025 to impose a 25 per cent tariff on certain new vehicle imports from the United States, Canadian car buyers are facing a new reality. This retaliatory measure, in response to similar actions from our southern neighbour, has significantly altered the automotive landscape. For those who view the world as their marketplace, it is now more important than ever to exercise our freedom of choice and look beyond America for the cars we want to see in Canada.

These tariffs don't apply to vehicles imported from Europe, South Korea, or Japan, which means we have a diverse range of options to explore. Based on the brands that already sell cars in Canada, here's a tariff-free wishlist of vehicles from the rest of the world, offering something for every car buyer's taste and needs.

Alpine A110 

Since the mid-1950s, Alpine has been a force to be reckoned with in motorsport, from rallying to endurance racing, and now to its current Formula 1 team, which debuted in 2021. The current Alpine A110 production sports car, developed in collaboration with England's Caterham Cars, pays homage to the 1961 to 1977 A110. With its unique mid-engine design and rich motorsport history, the Alpine A110 is a car that is sure to pique the interest of Canadian car enthusiasts. 

The A110 is powered by a 1.8-litre four-cylinder engine from Nissan, which Alpine engineers then fine-tuned to produce an impressive 249 horsepower and 236 pound-feet of torque. This power is entombed in an all-aluminum chassis, emphasizing the car's commitment to lightness and agility. The A110 features a dual-clutch transmission, allowing the rear-wheel-drive sports car to accelerate from zero to 100 km/h in just 4.5 seconds. Alpine has electronically capped the top track speed at 250 km/h.

Since its introduction in 2017, the modern A110 has been hailed as a worthy competitor to Porsche's entry-level 718 Cayman. Furthermore, when converted to Canadian dollars and inclusive of taxes, the A110 is priced at approximately $95,000, a figure that places it on par with the starting price of a Cayman.

Because Alpine's parent company is Renault, part of the Renault-Nissan-Mitsubishi Alliance between the French carmaker Renault and Japan's Nissan, even before the current tariffs were enacted, there has been speculation that the Alpine sports car should be sold in Canada via Nissan dealers. Maybe the tariffs will fulfill this wish.

Audi A1

The Audi A1, Audi's entry-level subcompact hatchback, is a compelling option for Canadian car buyers. It offers the attributes of a luxury brand at a more accessible price point, making it a great addition to the German brand's Canadian lineup below the current Audi A3 sedan. This blend of affordability and luxury is a key selling point for the A1, appealing to a wide range of car buyers around the world. 

Audi has a long-standing tradition of blending luxury with small cars, such as the 1970s’ Audi 50 and the all-aluminum A2 from the 2000s. The first-generation A1 hatchback, which arrived in 2010, continued this legacy with its two- and four-door models. The high-powered S1 version from 2014 to 2018, with 228 horsepower and all-wheel drive, further exemplified Audi's commitment to luxury and performance in a small package.

Audi made significant changes with the debut of the second-gen A1 in 2019. The two-door model was scrapped, but the four-door hatch continues to uphold the perceived quality, refined powertrains, and general desirability of more expensive Audi models.

The front-wheel-drive A1 in Europe is available with a wide range of turbocharged engines. With prices starting around $36,000, the A1 offers a luxurious driving experience at a price point similar to its Mini Cooper 5 Door rival, which could make it a smart financial choice for Canadian car buyers.

BMW M3 CS Touring

Whatever side of the Canadian-U.S. border you are on, there are more than enough SUVs and sports sedans to choose from. But if you're looking for a single vehicle that blends the thrill of a sports sedan with the practicality of an SUV, the BMW M3 CS Touring sports wagon is a great tariff-free choice.

Built in the German automaker's home in Munich, the BMW 3 Series wagon-based M3 CS Touring is crafted using the same recipe as the latest $90,000-plus M3 compact sedan introduced for the 2024 model year. 

Similar to the top-rung M3 CS sedan, the Touring features stiffer engine mounts, higher-capacity cooling and oil-supply systems, and an optional front-end strut brace for the engine compartment. In addition to the M3 Touring Competition model, the 479 pound-feet of torque remains. Still, the CS gains 20 extra horsepower, boosting the twin-turbocharged 3.0-litre six-cylinder engine to a whopping 543, which is heard through an upgraded exhaust with electronically controlled baffles and a titanium rear silencer. BMW boasts that the M3 CS Touring can zip from zero to 100 km/h in 3.5 seconds, promising an exhilarating driving experience. An eight-speed automatic transmission provides power to all four wheels for all-season sports wagon driving thrills. 

BMW stopped selling its 3 Series compact wagon in Canada in 2019, but it continued to be sold in other markets. And while the automaker has confirmed that its $150,000-plus BMW M5 Touring will be sold here, the smaller and cheaper by one-third M3 CS Touring could boost the brand’s sales at a time when even well-heeled consumer budgets are getting tighter.

Kia Picanto

Small cars have become an endangered species at your local auto mall. The accelerated costs of safety features, changing consumer preferences, and the rise of SUVs and crossovers have all contributed to the decline of small cars. 

No doubt, automakers are shifting their focus to larger vehicles, leaving the small car market in a state of flux. One example is the Kia Rio. After providing affordable transportation for thousands of Canadians for almost a quarter of a century, Kia axed its entry-level subcompact Rio nameplate after the 2023 model year. However, Kia offers various urban and wallet-friendly vehicles in other countries, like the Picanto. 

The Picanto — a name generated from combining the Spanish and Italian words "picante" and "piccante" for "spicy" — has been a staple in the Kia lineup for a long time, first introduced in 2003. Developed for crowded city traffic and to be as efficient as possible, the Picanto's performance is a testament to its design, which is to be adequate for most drivers’ needs. It was created to comply with South Korea's "light car" category, where owners get incentives for vehicles shorter than 3,600 mm (141.7 in) in length and 1,600 mm (63.0 in) in width. 

For 2025, the most affordable Kia in Canada is its $25,000 Soul small crossover, which starts at around a base price of $18,000 in Europe. The Picanto would fill the pricing gap in Kia's Canadian lineup left by the dearly departed Rio. Kia may also have a tariff-free ticket with the Picanto. Most of the small Kia production comes from a factory in South Korea. However, Kia offers complete knock-down versions of the car to be assembled for local production, which is a promising prospect if Kia decides to build the Picanto here in Canada. 

Renault 5 E-Tech

To complement the Alpine A110, we’re also suggesting that Nissan Canada look into its partner’s cupboard and consider importing the new Renault 5 E-Tech small battery-electric hatchback. For Canadians with a penchant for nostalgia, the new Renault 5 E-Tech is a delightful throwback to the original Renault 5, which graced Canadian roads from 1976 to 1983, marketed as LeCar. 

The 5 E-Tech pays homage to the OG model’s iconic looks, blending 1970s-themed interior and classic exterior design elements with 21st-century engineering. As an electric car designed for urban living, the small Renault EV offers two battery capacities (40 and 52 kWh) with corresponding driving ranges between 257 and 418 km. With a reasonable zero-to-100-km/h time of 8.2 seconds, it's perfect for urban errands. For those who need more power, there are Alpine-tuned trims with 174 and 215 hp. 

From this side of the Atlantic, the Renault 5 E-Tech looks to be stylish and enjoyable, but also affordable. Priced similarly to the $42,000 Fiat 500e, the made-in-France Renault offers a cost-effective option for those looking for a small electric car.

Subaru Levorg STI

Based on its most recent product debuts, Japan's Subaru looks like it has gone all-in on SUVs and electric vehicles. Even the all-new 2026 Subaru Outback has no claim to its Legacy wagon heritage. While it's hard to fault Subaru for following the latest trends, the tariff troubles could prompt buyers to consider more affordable and practical vehicles, such as the Subaru Levorg.

Diehard Subaru fans have been eagerly anticipating the Levorg since its debut over a decade ago in 2014. While we get a hatchback version of Subaru's compact Impreza, the Levorg's longer roof and extended rear cargo bay result in an affordable small wagon, a type of vehicle that hasn't been available in Canada since Volkswagen cancelled its Golf Sportwagen at the end of 2019.

Subaru recently released the Levorg STI Sport R-Black Limited in other markets to tease Canadian fans further. This Levorg model, while not a WRX wagon, boasts STI trim bits, upgraded Recaro front seats, and a leather-wrapped steering wheel. Priced around the WRX's $40,000, the made-in-Japan Levorg could be a compelling alternative to U.S.-built Subaru models.