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it's not just taxes or import taxes. There's NAFTA and a lot of cars are assembled in Canada. Say a BMW 2005 was 50k canadian, and the us equivalent was 35k. If the 2006 canadian BMW came out at 40 or even 45k which is the US price converted to cad, you devalue all previous years of that model by lowering your price on the new model. I don't see how they could just drop prices without causing a huge mess in the industry.
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