US tariffs on hold: What are your thoughts on potential impacts and contingency planning?

[Jon MacMull]

“With US tariffs and Canadian counter-tariffs now on hold for 30 days, the immediate crisis has been averted, but the threat of tariffs still looms. This can impact manufacturing and procurement, and even have far reaching impacts to employment and affordability within Canadian communities.

Some questions to explore:

What are some of the biggest potential impacts to the Canadian transit industry?
Are your organizations beginning to plan for potential contingencies if tariffs proceed?”

0

Discussion

[Kelly Luke]

Hi everyone, interesting discussion!
Even with the temporary pause, the uncertainty around tariffs is definitely something to watch. If they move forward, one of the biggest impacts on transit could be higher costs for vehicle procurement, parts, and infrastructure projects. With many Canadian agencies sourcing buses, rail components, and other equipment from U.S. manufacturers, price increases or supply chain disruptions could make it harder to expand or maintain fleets.

Looking forward to the discussion!

0

[Oliver Nicholls]

Just to bump this up a bit, I have heard from various transit agencies that OEM’s are planning on implementing tariff pricing only on parts received since the policies have been put in place and not on any parts that have already been installed. This may result in a slow increase in pricing rather than a sudden jump since some manufacturers already have the parts in stock and they were purchased pre-tariff.

0

[Jon MacMull]

PM Carney announced yesterday that auto parts would be exempt, which is good news for Canadian manufacturers.

0