Canadians are preparing for significant increases in prices on a variety of goods due to impending counter-tariffs, including American aluminum, toilet paper, and furniture. Another area affected will be the semi-trailers used to transport these goods in and around the country.
Ocean Trailer, the primary semi-trailer retailer in Western Canada, is facing a challenge with a $45 million order for 600 trailers from U.S. manufacturers. To beat the 25% counter-tariff on trailers and other items, the company is hurrying to get as many trailers across the border before the new regulations take effect.
Mack Keay, the Chief Operating Officer of Ocean Trailer, mentioned that the 25% increase would surpass their profit margin on a trailer, necessitating them to pass on the additional cost to the customers. The Canadian government is set to implement dollar-for-dollar countermeasures on $27.6 billion worth of U.S. goods in response to recent tariffs by the U.S. administration.
There is a concern among industry players about the impact of these counter-tariffs. The Manitoba Trucking Association highlighted that the majority of semi-trailers in Canada are sourced from the U.S., and many businesses are rushing to move their goods across the border before the new tariffs come into force.
Different types of semi-trailers, such as dry vans and refrigerated vans, are commonly used for transporting various goods in Canada. However, with the looming counter-tariffs, there is apprehension about the increased costs and potential shortages in the industry.
Overall, the industry is bracing for challenges ahead, as the tariffs are expected to escalate costs significantly. The average price of trailers is set to rise from approximately $75,000 to around $95,000 with the 25% tariff. This surge in costs could have severe repercussions on the trucking sector and beyond if the tariff war persists for an extended period.