New U.S. 50% Tariffs Will Impact Marine Shipping on the Great Lakes and St. Lawrence Seaway and Customers Who Rely on It

The new 50% tariffs imposed by the Trump Administration, as well as the promise of Canadian counter tariffs, will cause significant challenges for many companies represented by Chamber of Marine Commerce (CMC) that support the in-land marine supply chain, as well as the customers those companies serve on both sides of the border. 

“As marine shipping on the Great Lakes and St. Lawrence Seaway is a primary conduit for bi-national trade, this development will be challenging for many members of the CMC and their customers and may very well result in increases in the cost of living and potential scarcity in the availability of essential commodities,” noted Jason Card, Vice-President of External Affairs for the Chamber of Marine Commerce. “The Chamber of Marine Commerce will be highlighting for both federal governments the negative outcomes that arise when tariffs are applied on the vital cargoes that underpin the functioning of society.  We will advance our advocacy in the hopes that productive negotiation can resume quickly and lead to trade stability that achieves positive outcomes for our members and their customers throughout North America.”

An example of a vital commodity impacted by the new tariffs would be Canadian salt used to maintain road safety in winter conditions. The new tariffs will negatively impact municipalities throughout the United States who have relied on this critical commodity for years, as it can be expected to increase costs and place significant pressure on municipal budgets and operations. The situation is sufficiently concerning that Republican Senator Jerry Moran recently urged the Trump administration to consider the consequences of tariffs on Canadian salt imports, which he noted were crucial resource for winter road safety. As new developments occur related to trade negotiations, the CMC will be responsive with commentary and analysis that speaks for our members and their customers.

Key Facts

An independent study by Martin Associates confirmed the tremendous importance of marine shipping on the Great Lakes and St. Lawrence Seaway and coastal and arctic regions to the North American economy. The study revealed that the industry:

• made a total annual contribution of $50.9 Billion USD in economic activity across North America,
• supported approximately 360,000 jobs across the continent, and
• moved more than 252 million tonnes of foundational cargoes that include grain, potash for fertilizer, cement, iron ore, construction materials, and salt.