How New Brunswick's little-known auto sector is coping with tariffs

Jennifer Sweet · CBC News

· Posted: Apr 12, 2025 5:00 AM EDT | Last Updated: 9 minutes ago

A Dieppe institution that makes ambulances and accessible vehicles is among those successful the Canadian automotive assemblage feeling the impacts of the commercialized war, according to its president and CEO.

Terry Malley says his company, Malley Industries, typically sells to the U.S. and Canada. Its income to the U.S. are present taxable to tariffs. 

"The biggest vexation that we've had is educating our U.S. customers what this is each about," Malley said.

"We person to pass to them that our prices aren't changing. … These other costs are … due to the fact that of their government."

Tariffs and counter-tariffs of 25 per cent were slapped connected Canadian and U.S automobiles and Canadian car parts this month, connected apical of aluminum and alloy tariffs introduced past month.

Malley shipped rather a fewer vehicles to the U.S. up of the latest circular of tariffs — arsenic did different New Brunswick institution that makes automobiles, said Ron Marcolin, New Brunswick divisional vice-president for the Canadian Manufacturers and Exporters association, but that different institution didn't privation him to merchandise its sanction oregon immoderate different details.

Now that tariffs are being imposed astatine the border, immoderate U.S. customers are asking for their deliveries to beryllium delayed, Malley said.

"Obviously, they're acrophobic astir their costs," helium said.

Malley said helium is well-stocked with vehicles that were assembled earlier immoderate proviso costs were inflated, but if the commercialized warfare goes connected for long, he'll person to rise his ain prices, too.

WATCH | 'Tariffs up, tariffs down, tariffs in, tariffs out, we person nary idea': 

"Everything that happens to those [original instrumentality manufacturers] … comes close down to us," helium said. 

"Second-stage manufacturers," specified arsenic Malley run successful communities crossed the country, adding contented to marque specialized vehicles. Besides ambulances and accessible vehicles, conveyance types see RVs and commercialized trucks.

Malley uses conveyance bases — oregon chassis — from Stellantis and Ford, that are made successful Mexico and the U.S., respectively.

Other inputs travel from Canada, the U.S. and elsewhere. Among these are Canadian alloy and thermoform integrative parts manufactured on-site successful Dieppe.

Some inputs are present taxable to counter-tariffs and Malley expects much could beryllium successful the future.

It's precise confusing to effort to fig retired what duties are applicable for cross-border sales, helium said.

Marcolin, of the exporters' group, describes those calculations arsenic "a elephantine matrix" that "nobody has figured retired yet."

Generally, it's each done successful beforehand for documents that travel shipments implicit the border, helium said. 

Then, for borderline agents, it's a substance of checking the particulars and perchance conducting an inspection. 

But everyone is learning what categories goods acceptable into arsenic they go, said Marcolin. 

In the past week, immoderate New Brunswick exports to the U.S. person continued to get implicit the borderline seamlessly, portion others have been held up, helium said, adding that holdups look to beryllium the exception, not the rule.

"But we are wasting a batch of clip dealing with each this paperwork," helium said. "And the outgo is horrific."

"We are, rather frankly, spinning our tires and wasting a batch of invaluable clip doing that, erstwhile we could person escaped trade."

Holding a batch of inventory isn't perfect either, Marcolin said. It comes with costs specified arsenic warehousing, security and depreciation.

Malley is hopeful that the tariffs volition beryllium short-lived.

"I bash deliberation implicit the adjacent period oregon so, a batch of this worldly volition benignant itself out," helium said.

"It has to."

Malley expects that works closures and layoffs, adjacent impermanent ones, which are already happening, volition marque the U.S. medication beryllium up and instrumentality notice.

Many of his competitors successful the U.S. are besides affected due to the fact that they usage alloy from Canada, helium pointed out.

Malley has considered the anticipation of relocating to the U.S. to effort to debar tariffs, but doesn't spot a bully concern lawsuit for it.

"That's not successful the cards," helium said. "It's not an casual happening … to uproot and determination to different country.

"You tin re-establish there, but … it takes years. Who's going to privation to bash that if the rules support changing?"

Malley has a batch of enactment to bash for Canadian customers to support busy, helium said, and if indispensable the institution tin "pivot."

"Atlantic Canadian companies are utilized to sometimes dealing successful hard times," helium said.

About 80 radical enactment astatine Malley.

So far, nary 1 has been laid disconnected and nary planned investments person been delayed, the CEO said.

LISTEN: Malley Industries CEO explains however tariffs and tariff disorder impact his business:

"It mightiness beryllium a pugnacious slog for a while, but I'm an optimist.

"We survived Trump before, and I deliberation we volition again. … I deliberation we'll beryllium present agelong aft helium is."