Canadian businesses are preparing for significant increases in prices due to counter-tariffs, affecting various items like aluminum, toilet paper, and furniture, as well as the semi-trailers used to transport these goods. Ocean Trailer, the leading retailer of semi-trailers in Western Canada, is expediting a $45 million order of 600 trailers from U.S. manufacturers before a 25% Canadian counter-tariff on trailers and other products comes into effect.
Mack Keay, the Chief Operating Officer of Ocean Trailer, stated that the additional cost from the counter-tariff would surpass their profit margin on a trailer, necessitating passing on the cost to customers. The federal government announced countermeasures on $27.6 billion worth of U.S. goods in response to tariffs imposed by President Donald Trump’s administration.
Concerns extend beyond Ocean Trailer, with the Manitoba Trucking Association expressing worries about the impact of the counter-tariffs on trailer costs for its members. Businesses are rushing to bring goods into Canada before the tariffs take effect.
The industry heavily relies on U.S.-manufactured semi-trailers, with refrigerated vans being crucial for transporting perishable items and dry van trailers used for various non-perishable goods. Canada’s limited domestic trailer manufacturing capacity poses challenges to meet the increased demand post-counter-tariffs.
The potential rise in costs due to tariffs is significant, with the average trailer cost expected to increase from $75,000 to $95,000. The shortage of trailers could drive up costs and impact the shipping of consumer goods. Both Ocean Trailer and the Manitoba Trucking Association are apprehensive about the long-term effects of the tariff war on businesses within and outside the trucking sector.