Canadians are preparing for significant impact as counter-tariffs are expected to result in higher prices for American goods, including aluminum, toilet paper, furniture, and more, as well as on the semi-trailers used to transport these products across the country.
Ocean Trailer, the main retailer of semi-trailers in Western Canada, is currently awaiting the delivery of 600 trailers from manufacturers in the U.S., valued at $45 million. 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 takes effect.
Mack Keay, the Chief Operating Officer of Ocean Trailer, emphasized that the additional 25% cost exceeds their profit margin per trailer, leaving them no choice but to pass on these increased costs to customers. This move comes in response to the latest round of tariffs imposed by the Trump administration, prompting the Canadian government to implement dollar-for-dollar countermeasures on $27.6 billion worth of U.S. goods.
While Ocean Trailer is attempting to adjust its orders to mitigate the impact, the company may still be obligated to receive trailers already in production in the U.S. Any trailers not brought into Canada before the tariff deadline will either remain in the U.S. or be sold to American retailers, resulting in financial losses for Ocean Trailer.
The Manitoba Trucking Association echoed concerns, noting that most semi-trailers in Canada are sourced from the U.S. Many businesses are racing to import goods before the counter-tariffs take effect to avoid the increased costs associated with the new trade measures.
The potential consequences of the counter-tariffs are alarming for the industry as a whole. The average cost of trailers, approximately $75,000, is expected to surge closer to $95,000 with the 25% tariff in place. Ocean Trailer and other trucking companies are facing uncertainties in trailer supply and increased costs that may impact consumer goods transportation.
The industry’s reliance on a mixed model with suppliers in the U.S. and Mexico adds to the complexity of the situation. As Canadian trucking companies may seek rentals as an alternative to purchasing higher-cost U.S. trailers, the demand for rentals is likely to spike, potentially leading to supply shortages and customer service challenges.
The duration of the trade war and the longevity of the tariffs will determine the severity of the impact, with concerns raised about potential bankruptcies within the trucking sector and beyond if the situation prolongs.