How Will New Tariffs Affect Your Heavy Truck?
It’s hard to escape the news these days – every radio, TV, website and magazine is blaring headlines about some big bombshell that’s ready to go off. So unless you’ve been living in a cave with your hands over your ears, you’ve probably heard about the ongoing trade disputes between Canada and some other important trade partners.
On one hand, we are in the midst of renegotiating tariffs and trade terms with our largest ally and trader, the United States. NAFTA, a longstanding agreement that regulated the amount of taxes and fees that import/export items had between the three North American countries, is currently being drawn up anew, and what that will mean for our automotive supplies still remains to be seen. On the other hand, one of the world’s – and Canada’s – main suppliers of oil, Saudi Arabia, is now at odds with our government as well, meaning that there could be trouble on the horizon for all Canadians.
So what would this mean for the automotive industry, or any other business dependent on fleets of vehicles and efficient maintenance schedules?
If relationships degrade further, buying parts for your trucks or other heavy equipment could become more expensive, as the cost of import taxes is passed along to the end consumer, or they may even be harder to get in the first place, since many shipping companies will not be able to handle the increased costs and will simply go out of business! And beyond that, a dispute with a major oil supplier would likely mean higher gas and diesel prices and increased freight rates. Not a good scenario, no matter how you look at it!
One possible piece of advice we have for anyone facing this situation: keep up with your preventative truck maintenance! If parts and transportation become more expensive, then any repair that requires materials to be brought to you will – you guessed it – be more costly. Being able to anticipate these costs and incorporating them into your plans can help mitigate their impact.
Of course, it’s too early to say for sure what the fallout of these trade wars will really be, so we’ll simply have to wait and see as time goes on. Whatever happens, though, West Tech Mobile will be here to give you the best advice, service, and prices on preventative maintenance in Calgary, repairs on your truck or heavy-duty vehicle, and the most up-to-date information in our industry. Contact us today to find out more!