Canadians preparing for substantial counter-tariffs are not just facing increased prices on American aluminum, toilet paper, furniture, and more, but also on the very semi-trailers transporting these products into and around the country.
Ocean Trailer, the primary distributor of semi-trailers in Western Canada, is awaiting a $45 million order of 600 trailers from U.S. suppliers.
The company is expediting the process to bring as many trailers across the border before a 25% Canadian counter-tariff on trailers and numerous other items takes effect on Tuesday.
Mack Keay, the Chief Operating Officer of Ocean Trailer, stated that the additional cost of 25% exceeds their profit margin on a trailer, leaving them with no choice but to pass on the cost to customers.
The federal government announced that dollar-for-dollar countermeasures will come into force at 12:01 a.m. on Tuesday on $27.6 billion worth of U.S. goods, in response to the latest tariffs imposed by President Donald Trump’s administration.
Keay mentioned that Ocean Trailer might be able to cancel some of the order, but they are committed to the trailers already in production in the U.S., with potential storage or sale challenges for those not arriving in Canada by September 8.
Concerns Across the Industry
Ocean Trailer is not the only one affected.
The head of the Manitoba Trucking Association expressed concern as most semi-trailers in Canada originate from the U.S.
Many businesses are rushing to move goods north of the border before the tariffs take effect, as revealed by Aaron Dolyniuk, the executive director.
Various types of semi-trailers, including dry vans and refrigerated vans, are commonly used in Canada for transporting different goods.
An international affairs expert warns of potential ugly fallout from Canada’s counter-tariffs on the U.S., attributing it to the president’s volatility.
Reefer vans, known for transporting temperature-sensitive items, and dry van trailers, used for various goods like appliances, parts, furniture, and more, are widely utilized in the transportation industry.
Challenges Ahead
With only two semi-trailer manufacturers in Canada, the industry faces challenges in meeting the increased demand resulting from the counter-tariffs.
Keay highlighted the limited domestic manufacturing capacity compared to the industry’s needs.
The potential impact of counter-tariffs on trailer costs is significant, with the average cost expected to rise from $75,000 to around $95,000, affecting businesses and consumers alike.
Increased demand for trailers and potential shortages could lead to higher costs and challenges in meeting the transportation needs of businesses.
The industry remains uncertain about the lasting impact of the tariff war and its potential consequences on businesses, including bankruptcies within the trucking sector.
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