Canadians are preparing for significant increases in prices on various American goods due to impending counter-tariffs, including aluminum, toilet paper, furniture, and more. Additionally, the cost of semi-trailers used to transport these goods will also rise as a 25 per cent Canadian counter-tariff on trailers and other items is set to take effect soon.
Ocean Trailer, the primary retailer of semi-trailers in Western Canada, is facing a challenge with a $45 million order of 600 trailers from U.S. manufacturers. The company is expediting the process to bring these trailers across the border before the tariff increase. The Chief Operating Officer, Mack Keay, mentioned that the additional 25 per cent cost would surpass their profit margin, necessitating passing on the cost to customers.
The Canadian government announced retaliatory measures on $27.6 billion worth of U.S. goods in response to recent tariffs imposed by the Trump administration. Ocean Trailer may have to cancel some orders, but trailers already in production in the U.S. will incur additional costs if not brought into Canada before the tariff deadline.
The Manitoba Trucking Association also expressed concerns as the majority of semi-trailers in Canada originate from the U.S. Members who placed orders before the tariff announcement are worried about the increased costs. Businesses relying on trucking companies for shipping are hurrying to transport goods into Canada before the tariffs take effect.
The industry faces challenges due to the potential rise in costs from the counter-tariffs. The average cost of trailers may increase from $75,000 to $95,000 with a 25 per cent tariff. The limited domestic manufacturing capacity in Canada poses a risk of trailer shortages, leading to increased costs for consumers.
The impact of the tariff war on the trucking sector and related industries could be severe if prolonged. Companies may struggle to cope with the rising expenses, potentially resulting in bankruptcies. The uncertainty surrounding the duration of the tariff dispute adds to the industry’s concerns about the future.