Shippers watching upcoming US and Canadian elections closely, with trade policies in the balance

As both the U.S.A. and Canada undergo contentious races for their respective highest governmental offices, many industries are rightly considering how best to prepare for potential changes to policies, both internal and global. 

The shipping industry, in particular, has been keeping track of discussions around trade, with goods imported from China at the forefront of campaign rhetoric regarding international economic relations. 

Recently, the Biden administration finalized its plan to raise tariffs on a range of goods coming from China, adopting hikes that it proposed in May. Product categories include electric vehicles, semiconductors, and critical minerals. Though the first of these tariff hikes are set to go into effect this month, other increases are not until 2025 and 2026 when a new administration will be in the White House. 

With the U.S. election just a few weeks away, polls point to a close contest. Should Vice President Kamala Harris win, it is not certain that she would maintain all of the policies set in place by the current administration, of which she is a part. Former President Trump has viewed tariffs as a punitive measure against China and spoken of significant increases. 

Signs point to Canada following in the same direction with regard to tariffs, with similar concerns being raised among Canadian businesses about the impact of goods imported from countries with significantly lower production and manufacturing costs. With Prime Minister Justin Trudeau struggling to maintain support for his government, amidst widespread discontentment with raising living costs, trade policies could become an increasingly significant area of debate and change in the coming year, with the Canadian federal election currently scheduled for October 2025. 

Immediately following Biden’s announcement about tariffs, freight rates began to creep downward. Was this correlated, coincidental, or related to other issues such as the possibility of a major work disruption at East Coast and Gulf Coast ports? A clearer answer might emerge in time, but the time to strategize is now. Canaan has a trade department, TradeSuccess ™, that is ready to help you prepare for ongoing success in an uncertain political environment. Please contact rezza@canaangroup.ca to schedule a conversation today.