Buy Before the Tariff

[Eggscape]

Our friends south of the border may want to consider buying their Canadian built trailer sooner than later if the promised 10% tariff is to be applied.

 

[Selkirk]

Last I heard, 80%+ of ETI's production is sold into the US market. This makes be think that the anticipated trade policy changes stemming from recent events might serve as a catalyst for ETI to relocate manufacturing facilities south of the border......

 

[Mike G]

Will this be terrific, or or just tariff-ic? Time will tell...

 

[Eggscape]

Yup…given the nature of the company and how they did that to Campion boats here in Kelowna BC a few years back…I am sure they have a plan of some sort.

 

[Eggscape]

Or make it disappear altogether…
It is a very sad story what the investment group did to Campion Boats which is short but interesting story in the link below.

https://boatingindustry.ca/featured-articles/it-s-official-campion-marine-shuts-down-on-august-31/#:~:text=Kelowna%2C%20British%20Columbia%2Dbased%20Campion,manufacturing%20facility%20by%20August%2031.

 

[Selkirk]

ETI is already at a disadvantage by being based in what has to be one of the most expensive regions in Canada to operate a manufacturing facility of its kind. I'd also bet that quite a high percentage of their raw materials/trailer components are sourced (or at least distributed) from the US and purchased in USD. Add in an anticipated protectionist shift to your biggest customer market and source of future growth.....resulting in further erosion of already weakened free trade agreements. You have to ask yourself how much longer can they justify remaining based in Canada?

Don't get me wrong. The fact that ETI remains Canadian owned and built was a big influence in my purchase decision. I'd be really disappointed to see them make the move south. However, I can understand why such a decision may be necessary.

 

[MadGal18]

Does anyone know the earliest this new tariff could possibly be enacted? I cannot figure out if it is something that would need additional levels of approval by the US government.

 

[Centex]

Does anyone know the earliest this new tariff could possibly be enacted? I cannot figure out if it is something that would need additional levels of approval by the US government.

....

thinking this thread should be closed before it drifts into the likely unavoidable but thankfully, on this forum, forbidden realm of politics
.....

 

[MadGal18]

....

thinking this thread should be closed before it drifts into the likely unavoidable but forbidden realm of politics
.....

Sorry, I really wasn't trying to make it political, moreso shining light on how little I know about how the US government works with regards to when new taxation/tariffs/etc can be enacted.

 

[Centex]

Sorry, I really wasn't trying to make it political, moreso shining light on how little I know about how the US government works with regards to when new taxation/tariffs/etc can be enacted.

Google is your friend, the subject is complicated

 

[Ron in BC]

You're right, it's complicated especially factoring in our 71 cent and sinking fast dollar. More an economic discussion than political. So many factors involved.

Ron

 

[HABBERDABBER]

Politics is economic policy, and vice versa. I've not read of any politics getting into this thread.
There will likely be tariffs for imports to the USA. Good or bad policy, there are implications to prospective buyers.
More info seems to be better for large financial decisions.

 

[TheNiceFamily]

This was one of my first thoughts as well - what the heck will ETI do if these tariffs come to fruition? It speaks volumes about my emotional connection to what is, essentially, a business not a charity or individual but I do feel very connected personally through my quite extensive and long-term communications with the ETI Team.

My second thought was - since the prices on the website are now solely in USD, if the CAD$ tanks (not necessarily a bad thing - there's silver linings there) would ETI not benefit from being paid for 80% of their inventory/builds in US$? It would mean price increases to the US to cover perhaps the difference in gain made in incoming conversion and tariffs on the outgoing but, maybe it would net out at nowhere near the 10-20% anticipated?

As for sourcing materials etc. in the US and paying in USD - I totally see how that might affect costs but, perhaps this would be a boon and boost to smaller Canadian suppliers, current or future, of materials. I know nothing but, I'd imagine that the overall cost of materials from the US might make up....15-20% of total cost? There's a huge manufacturing component - thankfully. This isn't an assembly-line product. Each RV is "built for us" and that, I would think, makes up a large percentage of the cost. And that cost is all Canadian.

Sorry - I'm answering this rather late in the evening and haven't given it really proper thought so shoot me down at will.

 

[JohnK-ESC]

This subject may be interesting grist for mills more geared to political economic policy than this one. I was actually thinking of depicting my chosen location for our new remote inverter switch, but I won't hijack this thread with that.

John