RV Industry Takes a Breath, But Tariffs Threat Still Looms – RVBusiness – Breaking RV Industry News
Members of the RV industry relaxed a little Monday afternoon as President Trump announced a 30-day pause in levying 25% tariffs on imports from Canada and 10% on oil, natural gas and electricity from Canada.
All of this came after a phone call between Trump and Canadian Prime Minister Justin Trudeau that tackled immigration and fentanyl smuggling concerns Trump had hoped to settle.
In a post on social media site X, Trudeau said, “Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl… we will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.”
In response, Trump amended Saturday’s executive order to state tariffs would not take effect until March 4 and that the situation would continue to be assessed in the meantime.
“As president, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that,” Trump said on Truth Social. “I am very pleased with this initial outcome, and the tariffs announced on Saturday will be paused for a 30-day period to see whether or not a final economic deal with Canada can be structured.”
Those in the RV industry who were contacted were somewhat relieved, but with so much uncertainty still in the air, they also were cautious about believing everything was solved.
“I know it could hurt the RV business if it goes on too long,” said Bob Brammer of Stromberg Carlson. “On the other hand the package that was passed and hopefully will stay intact will definitely benefit myself and the dealers and distributors who handle our accessories like they do – anybody else that goes through two step distribution. It would help us compete against e-commerce. That’s really my focus. They don’t pay tariffs and we do pay tariffs. That’s just not right.”
Brammer said both countries are proud of their cultures, and rightfully so, but there likely will be anxiety until the situation gets resolved.
Eleanore Hamm, president of the RV Dealers Association of Canada, said the organization will keep its members informed as well as it can to the evolving situation.
But she said she is much more upbeat than she was Saturday.
“It is excellent news because obviously the economic impact on both sides of the border by the tariff would be devastating. So, we really pleased that the conversation has continued at the political level,” she said. “And hopefully in the long run, we can avoid the tariffs altogether.”
Hamm said RVDA of Canada will hold a webinar Thursday for its members to keep them in the loop as to what the association is working on. Those interested in viewing the webinar can click here. (Scroll to the bottom for more information.)
She said advocacy is taking place in Ottawa to ensure Parliament is aware of the economic impact of outdoor recreation and the impacts a 25% tariff would have on dealers who are reliant upon U.S.-made RVs coming into the country.
“We don’t have the manufacturing capability in Canada to supply the product,” Hamm said, while acknowledging Canada’s Class B manufacturers. “So it’s not like there’s an alternative.”
Phil Ingrassia, president of the U.S. RVDA also pointed to the fluidity of the situation while acknowledging that Monday’s actions seem to be a step in the right direction.
“There’s a a lot of unknowns at this point, but it gives it gives it a little bit more time to negotiate before any tariff would go into place,” he said. “They could potentially obviously impact dealers pricing situations if prices go up on imported components and materials that manufacturers need. Some of van campers from the Canadian manufacturers would likely be impacted. We’re monitoring the situation and I certainly want to work with our industry partners at RVIA and RVDA of Canada to provide the best information we can to the dealers.”
Shane Devenish, president of the Canadian Recreational Vehicle Association, said the CRVA “highly welcomes” the announcement yesterday that the Canadian and U.S. governments have agreed to postpone the implementation of tariffs for 30 days following productive discussions between Prime Minister Justin Trudeau and President Donald Trump.
“The CRVA would like to express its appreciation to both administrations for the decision to engage in meaningful dialogue that works towards a resolution that avoids any unnecessary economic disruption,” Devenish said in a statement issued this morning (Feb. 4). “We strongly support these continued discussions to ensure that fair trade policies can remain in place to benefit businesses and consumers on both sides of the border.”
The RV Industry in Canada and the United States has “thrived under decades of mutually beneficial free trade policies,” Devenish continued. “The North American RV industry’s ability to provide our families with outdoor enjoyment is critically dependent on fair and stable trade policies to maintain production, sales, and investment.”
Trade barriers, if implemented, would significantly impact consumers, limit product availability, and reduce industry competitiveness, he added.
“We are optimistic that governments will use this extension period productively to explore equitable solutions that address the concerns of the US and Canada, which do not place undue burden and stress on our businesses and consumers,” Devenish said. “The CRVA remains committed to working with our industry partners, policymakers, and stakeholders to ensure that the interests of RV manufacturers, dealers, and owners are represented in any future trade negotiations.”
At Go Power!, a division of Dometic, plans are being made in advance just in case a settlement isn’t forthcoming.
“We were actively preparing our U.S. inventory levels prior to these announcements and are in a good position right now,” said Mark Spilsbury, RV Division manager, Go Power! “While the talks of tariffs and updates to trade policies are ongoing, we are actively evaluating our supply chain and the impacts on our business. Our priority is, and has always been, to ensure that our customer’s experience is top-tier, and this is no exception.”
RVDA of Canada, CRVA to Host Webinar
Join the RVDA of Canada and the CRVA for an important webinar on the upcoming U.S.-Canada tariffs and their impact on the RV industry. With the U.S. set to impose a 25% surtax on Canadian imports and Canada responding with similar measures – all of which has been placed on a 30-day delay – these changes could significantly affect businesses across the sector.
The webinar is scheduled for 9:30 a.m. PT, Thursday, Feb. 6. Presenters include Hamm, Devenish and Charles Bernard, a lead economist for Impact Pubic Affairs.
Key Topics
- Breakdown of the new tariffs effective February 4, 2025
- Products impacted, including RV appliances and components
- Canada’s response and potential future tariff expansions
- Business implications
- Advocacy efforts and steps RVDA of Canada is taking on your behalf
For any questions, email [email protected].