Canadians are preparing for significant increases in prices for American goods as a result of counter-tariffs, affecting products like aluminum, toilet paper, furniture, and even the semi-trailers used to transport these items across the country.
Ocean Trailer, the largest seller of semi-trailers in Western Canada, is currently awaiting a $45 million order for 600 trailers from U.S. suppliers.
The company is expediting the process to import as many trailers as possible before a 25% Canadian counter-tariff on trailers and various other items goes into effect on Tuesday.
Mack Keay, the Chief Operating Officer of Ocean Trailer, stated that the additional cost from the tariff exceeds their profit margin on a trailer, necessitating the price increase for customers.
The Canadian government announced retaliatory measures that will be implemented at 12:01 a.m. on Tuesday on $27.6 billion worth of U.S. goods in response to the recent tariffs imposed by the Trump administration.
Ocean Trailer may have the option to cancel some of their pending orders, but they are committed to the trailers already in production in the U.S., which might not arrive in Canada before the tariff deadline.
Concerns extend beyond Ocean Trailer as the Manitoba Trucking Association reported that most semi-trailers in Canada originate from the U.S., causing worries about the financial impact on orders made prior to the tariff announcement.
The looming tariffs have led businesses reliant on trucking services to expedite their shipments into Canada before the tariffs take effect.
Various types of semi-trailers are commonly used in Canada, with dry vans and refrigerated vans being the most prevalent. Dry vans transport a wide range of goods, while refrigerated vans cater to items requiring temperature-controlled conditions.
The limited domestic manufacturing capacity for semi-trailers in Canada poses a challenge in meeting the increased demand resulting from the tariffs.
The potential rise in trailer costs due to tariffs is substantial, with the average price expected to increase from $75,000 to around $95,000, impacting the entire industry.
Ocean Trailer branches across Canada are bracing for the impact, with concerns about potential shortages, increased costs, and the trickle-down effect on consumer goods.
The uncertainty surrounding the duration of the tariff conflict raises fears of bankruptcies within the trucking sector and beyond, emphasizing the need for a resolution.