How badly will this trade war affect me and my small shop?

The answer: I'm not sure because there are many moving parts to this mess before it finally reaches us. But it will reach us quickly—it always does.

What we can be certain of is that our costs for parts and products will increase, and we'll have to pass this on to our customers. This will undoubtedly impact the add-on services, particularly for our customers with smaller budgets. 

You may think that these Trump tariffs will only be paid by U.S. customers buying Canadian goods, and you are correct, for the most part. By simple design, the tariffs are intended to make our exported products less attractive by price and to encourage US customers to buy Made-In-America products. 

Other than those legislated by Canada, all US products coming into Canada are not taxed, and all Canadian products exported to the US will be taxed.

But, here's where it gets tricky;

• All products produced here but destined for US assembly, packaging, or processing are also taxed, even if they are entirely destined for Canadian markets.
• All American products that require imported parts for assemblies will be taxed on the imported parts.

There's no getting around it. The price of most products we purchase will increase.

However, there is a bright side. 

All products produced here in Canada and destined for our Canadian markets will not be affected by tariffs.  

So, the answer would seem to be "Buy Canadian". 

Yes, I wholeheartedly agree.....while you still can. 

I say "while you still can" because a growing problem will profoundly affect our Canadian manufacturers.

There's a problem brewing. 

When Canada entered the North American Free Trade Agreement (NAFTA) in 1994, which lifted all tariffs and was subsequently replaced with Trump's United States-Mexico-Canada Agreement (USMCA) in 2020, our Canadian manufacturers began focusing heavily on US markets so much so that they became complacent about their local and regional markets here at home.

On the front line of this industry, we recognized this through the absence of factory field representatives, market engagement, and support. As a direct result, the reasons for maintaining brand loyalty were gone. Our product choices had diminished to 'price and availability'.

This weakened the Canadian markets for our Canadian manufacturers. Since Canadian producers no longer secured local markets, foreign suppliers could fill the gap, further weakening the marketplace.

Now, we get blindsided by Trump's tariffs.

That means the tap for the US markets will be turned off, seeing as our American counterparts will outprice our products.

What will happen to our Canadian manufacturers?

Given the evidence and facts, it doesn't look promising if the tariffs stay in place for any length of time, and I don't know if many can survive the storm without the US markets and weak Canadian market shares.

Yes, there is significant turmoil in the US political arena, with stock markets crashing and a recession looming, all created by one person, Donald J. Trump. We have no idea what the near future will bring. But can we afford to wait and see?

Our U.S. Relatives

Yes, I consider the automotive aftermarket south of our border, our extended family, because we have always shared and depended on each other for so much. So, we certainly cannot get mad at them for any of this, because they are going through far worse than we will experience. We're seeing this already, with the loss of their trading partners, their economy crashing, extensive layoffs, and soon, many business closures on the horizon. I can't see much light at the end of the tunnel for them.

Trump's plan is definitely backfiring.

A Way Out 

What did we do, here in Canada, before NAFTA?

Every manufacturer had an army of field representatives whose job was to build and manage local markets. They brought with them all the tools and resources needed to provide factory support to local installers, dealers, and distributors. This was a relationship, not advertising, and it's this relationship that served as the marketing foundation for manufacturers to secure their strengths in the Canadian marketplace.

That era may be gone, but the lessons we learned hold the answers to not only surviving this storm, but coming out the other end stronger and more secure.

The solution is a 'grassroots' one: reengaging with individual commercial customers in their local markets to rebuild relationships. Show your support by listening and solving issues.  Give them the resources they need, and improve customer service programs. Since 'Buy Canadian' is now at the forefront, commercial customers are more apt to support our home manufacturers, especially those who are willing to work for them.

This can be done through IT, without hiring armies of representatives. 

Every effort is a step in the right direction.

This may not be a total solution to the problem, but it will help them survive this storm. Plus, they will be more secure in their local and regional markets when these tariffs are finally lifted.

Can we improve on that concept? Of course, we can. However, that would require a more collaborative line of thinking and a topic for another discussion.

The way it is right now, I don't think our customers would even notice if some of our long-standing manufacturers have to close their doors forever.

Bob Paff

Editor, ASBN Publications

New Westminster, BC

"Connecting Our Industry Together"