VideoEnergy & Economy
Trump's 25% trailer tariff hits Prince Edward Island maker as American buyers pay half
A Prince Edward Island trailer maker is absorbing nearly $1 million in tariffs, and the goal is now to make the American market matter less.
Summary
Trout River Industries in Coleman, Prince Edward Island, builds conveyor trailers that carry cargo out on a belt instead of tipping, a design popular with American paving crews and farmers. The United States once made up 40% of its sales, and the company wanted more. Now every trailer sold south of the border carries a 25% tariff, which Trout River absorbs half of while American buyers pay the rest.
The company has absorbed nearly $1 million in tariff costs, and uncertainty over future tariffs makes it hard to plan with partners. President Steven Kenna says the company is responsible for its 106 workers and their paychecks. Ottawa, through the Atlantic Canada Opportunities Agency, awarded Trout River nearly $988,000 of the more than $6.9 million going to 17 Island businesses. That grant helps pay for a newly completed inventory building, not the tariff bill.
The video says Trout River is now targeting Western Canadian wood chip and fuel industries and exploring models for northern Ontario mines, with the aim of making the American market a smaller share of sales. Ron Markin of Canadian Manufacturers & Exporters says diversification is key, and Atlantic manufacturers are eyeing Europe under CETA.
Key points
- Trout River Industries employs 106 people in Coleman, Prince Edward Island.
- The United States once made up 40% of the company's sales.
- A 25% tariff applies to every trailer sold in the United States, with half absorbed by the company.
- Nearly $1 million in tariff costs has been absorbed so far.
- ACOA awarded $6.9M+ to 17 Island businesses responding to American tariffs; Trout River's share is nearly $988,000.
- CETA has been provisionally in force since 2017.
Questions answered
How is the 25% tariff being split between Trout River and American buyers?
Trout River absorbs half of the 25% tariff on every trailer sold in the United States. The other half falls on American dealerships and the customers buying the trailer. The video says Trout River absorbs its half to keep American dealers working with it.
Why did Ottawa fund a building instead of covering the tariff bill?
According to the video, a reimbursement is gone once spent, while a building keeps lowering costs for years. Ottawa's nearly $988,000 share for Trout River helps pay for a newly completed inventory building, where kits holding every part for one trailer will be prepared, letting the company keep less stock on hand.
Where is Trout River looking for new customers beyond the United States?
The video says Trout River is targeting Western Canada's wood chip and fuel industries with a new trailer design, and exploring tougher models for northern Ontario mines. Atlantic manufacturers are also looking to Europe through CETA, which has been provisionally in force since 2017.
Prepared by the CanadaNext Editor with AI assistance from public reporting and CanadaNext's own videos. Sources are linked. How we work