Great Lakes shipping industry leaders are responding to the restart of the trade conflict between the U.S. and Canada.
The Trump administration announced a 50% tariff on $20 billion of Canadian goods Tuesday, after U.S.-Canada trade talks broke down over the weekend. President Trump has threatened similar 50% tariffs on Canadian steel and auto parts.
President Donald Trump referred to Canada as “among the worst Nations in the World to deal with,” Monday.
Canada has announced reciprocal tariffs on $20 billion in U.S. goods. Canadian Prime Minister Mark Carney said Monday that he would be open to talks “when the Americans go to the negotiating table first, with the right attitude towards our industries.”
Jason Card is the vice president of external affairs at the Chamber of Marine Commerce. They represent shipping and marine interests in the U.S. and Canada.
Card argues tariffs will make raw materials like salt, grain, iron ore for steel making and aluminum more expensive. America imports the vast majority of its aluminum, and the majority of American imports come from Canada.
"When you start to place extra cost on those items, which are primarily moved on the Great Lakes and our shipping is a key part of binational trade, you rapidly increase the cost of living and the cost of doing business,” Card said.
The Great Lakes-St. Lawrence Seaway generated around $50 million in economic activity in 2023, according to the Great Lakes St. Lawrence Seaway System.
In addition, Card argues the auto industry is particularly vulnerable to a trade conflict because of price shocks for raw materials.
“Once you start adding the cost there, everything becomes more expensive and we're already in a time when autos have never been more expensive,” he explained.
American shipping industry officials have supported Trump's tariffs in the past.
They say Canadian vessels benefit from American icebreakers and infrastructure like the Soo Locks and tariffs will encourage more domestic production.
Ultimately, Card says both sides should make a deal, he called for “constructive dialogue and progress on negotiations.”
