Canadian businesses are preparing for significant impacts from upcoming counter-tariffs, not only on a variety of imported goods but also on the transportation means like semi-trailers used to move these products. Ocean Trailer, a major semi-trailer retailer in Western Canada, is urgently trying to get a $45 million shipment of 600 trailers from U.S. suppliers across the border before a 25% Canadian counter-tariff on trailers and other items comes into effect. This move is in response to the recent tariffs imposed by President Donald Trump’s administration, affecting $27.6 billion worth of U.S. goods.
Mack Keay, the Chief Operating Officer of Ocean Trailer, mentioned that the additional 25% cost would surpass their profit margin on a trailer, compelling them to pass on the price increase to customers. The company may be able to cancel some orders, but those already in production in the U.S. will either have to stay there or be sold domestically at a loss.
The Manitoba Trucking Association expressed concerns about the impact on the industry, as most semi-trailers in Canada are sourced from the U.S. Many businesses are rushing to bring goods into Canada before the counter-tariffs take effect, fearing the escalated costs. The potential rise in trailer prices due to tariffs could lead to financial strains on trucking companies and their customers.
The shortage of semi-trailers is anticipated to disrupt the industry, as Canadian manufacturers lack the immediate capacity to meet the surge in demand. The average cost of trailers may increase from $75,000 to $95,000 with the added tariffs, affecting businesses and consumers alike. The uncertainties created by the ongoing tariff war pose a threat of bankruptcies within the trucking sector and other related industries if the situation prolongs.
Ocean Trailer’s branches are witnessing a daily influx of trailers to meet existing orders and expand their rental fleet, emphasizing the urgency and scale of the issue. The potential consequences of sustained tariffs could have far-reaching implications on businesses and the overall economy.