When United States tariffs threaten your business, you have to adapt quickly. That is exactly what one Atlantic Canadian manufacturer is doing to protect its workers and its revenue. According to CTV News, Trout River Industries in Prince Edward Island is shifting its focus away from the American market and looking toward domestic and European buyers.

The Financial Impact of Tariffs

The trade dispute impacted Trout River Industries significantly. The company absorbed nearly one million dollars in tariff costs. Sales dropped in both Canada and the United States. Previously, American buyers accounted for 40 percent of the company sales. Now, every trailer sold in the United States carries a 25 percent tariff. The manufacturer pays half of that cost, and American dealerships cover the rest.

Company president Stephen Kennaugh knows what is important for his team.

“We’re survivors. So, we’re going to survive anyway,” Kennaugh said. “We have 106 people here and they all have paycheques, they all have mortgages and they all have groceries. We’re responsible for that.”

Pivoting to New Markets

The company builds large commercial trailers that use a conveyor belt to unload cargo. These trailers are popular in the paving and agriculture industries. To replace lost American sales, Trout River is targeting the woodchip and fuel industries in Western Canada with a new trailer design. The team is also exploring tougher models for mining operations in northern Ontario.

Ron Marcolin is the divisional vice president for New Brunswick and Prince Edward Island with Canadian Manufacturers and Exporters. He notes that businesses across the region are learning difficult lessons from the trade dispute.

“We can’t count on the United States going forward, exclusively. And some companies did that for a number of years,” Marcolin said. “Diversification is key.”

Marcolin adds that local manufacturers are eager to export to Europe. He points out that Atlantic Canada has a strategic advantage on the coast, citing straightforward currency exchanges and a strong reputation for quality.

Government Support Boosts Efficiency

Trout River is not fighting this battle alone. The federal government awarded the company nearly 988,000 dollars through the Atlantic Canada Opportunities Agency. This non repayable funding pays for a newly completed inventory building. Workers now prepare kits containing all the parts needed for each trailer before production begins. This improves inventory control and allows the company to keep less stock on hand.

“The efficiency and the cost saving is going to help us to compete,” Kennaugh said.

Frequently Asked Questions

What does Trout River Industries manufacture?

The company builds large commercial trailers that use a conveyor belt to unload cargo. These are widely used in the paving and agriculture industries.

How much did the US tariffs cost the company?

Trout River Industries absorbed nearly one million dollars in tariff costs since the trade dispute began.

How is the company replacing lost US sales?

The manufacturer is designing new trailers for the woodchip and fuel industries in Western Canada. They are also exploring mining markets in northern Ontario and looking at export opportunities in Europe.