Canadians are preparing for significant increases in prices on various goods due to counter-tariffs, including American aluminum, toilet paper, furniture, and more. These tariffs will also affect the cost of semi-trailers used to transport these goods across the country.
Ocean Trailer, the largest semi-trailer retailer in Western Canada, is awaiting a $45 million order of 600 trailers from U.S. manufacturers. The company is expediting the delivery of as many trailers as possible before a 25% Canadian counter-tariff on trailers and other items goes into effect on Tuesday.
Mack Keay, the Chief Operating Officer of Ocean Trailer, mentioned that the additional cost of the tariff exceeds their profit margin on a trailer, necessitating passing on the cost to customers. The Canadian government’s dollar-for-dollar countermeasures will affect $27.6 billion worth of U.S. goods starting at 12:01 a.m. on Tuesday.
Concerns are widespread within the industry, with the Manitoba Trucking Association expressing worries about the increased costs of semi-trailers ordered before the counter-tariffs were announced. Businesses are rushing to expedite shipments before the tariffs take effect.
Semi-trailers play a crucial role in Canadian logistics, with dry vans and refrigerated vans being the most common types used. However, with the looming tariffs, the industry is bracing for challenges due to the reliance on U.S. manufacturers for these essential transportation tools.
The limited domestic manufacturing capacity in Canada poses a significant issue in meeting the surge in demand for trailers post-tariffs. The increased costs could have a substantial impact on the industry, potentially leading to shortages and higher prices for consumer goods.
Dallas Senebald, the branch manager for Ocean Trailer in Winnipeg, emphasized the potential repercussions of the tariffs, highlighting the strain it could put on the industry and consumers. The uncertainty of how long the tariff war will persist adds to the concerns of potential bankruptcies within the trucking sector and beyond.