The American Bus Association (ABA), United Motorcoach Association (UMA), Motor Coach Canada (MCC), and Ontario Motor Coach Association (OMCA) said they are closely monitoring the trade disputes between the U.S. and Canada and warned of the impact to manufacturers, suppliers and consumers.
On Saturday, President Donald Trump signed an executive order that is scheduled to impose a 25 percent tariff on Canadian imports starting Tuesday. Canada responded with its own 25 percent tariff on $30 billion worth of U.S. goods, also set for Tuesday. The Ministries of Finance and Foreign Affairs said Canada also intends to impose a tariff on $125 billion in additional U.S. goods, which includes electric vehicles, trucks and buses.
ABA, UMA, MCC and OMCA issued a joint update Sunday that said the tariffs could significantly impact the motorcoach industry, which like the school bus industry relies on a global supply chain involving components from both countries. The associations added they are coordinating advocacy and lobbying efforts to mitigate the impact of the tariffs and are encouraging members to share their concerns.
Last month, S&P Global said the blanket tariffs would have a “massive impact” on nearly all automative manufacturers worldwide, with reciprocated tariffs by Canada and Mexico adding “another degree of complexity.” While commenting specifically on passenger vehicles, S&P Global noted that Canadian or Mexican-sourced propulsion systems and components in U.S. manufactured vehicles “would see a tariff as well.” It added that the tariffs could add $6,250 to the cost of $25,000 vehicle.
Mexico reportedly reached a deal with the U.S. on Monday to pause its 25 percent tariff. An additional 10-percent tariff with China remains in place, which is also set to begin Tuesday.
School Transportation News reached out to multiple sources to ask about the impact of school bus production and sales. One source responded that it was premature to discuss the tariffs as they were being negotiated in real time. Another indicated that the tariffs are subject to continuing negotiations and could change, as “school bus manufacturing isn an American success story,” though concern remains especially about individual components.
Meanwhile, Micro Bird, the joint Type A venture between Blue Bird of Fort Valley, Georgia, and Girardin Minibus of Drummondville, Quebec, is the only school bus currently manufactured in Canada for sale in the U.S.
Electric school bus manufacturer GreenPower Motor Company has headquarters in Vancouver, British Columbia, but the company manufactures out of Porterville, California, and South Charleston, West Virginia. RIDE, the school bus arm of Chinese company BYD, manufactures its electric school buses in Lancaster, California.
An auction process begins this month for Lion Electric Company, which obtained bankruptcy protection in December.
Additionally, many school bus suppliers of technology solutions and equipment are based in Canada or have manufacturing there. Many school bus components are also imported from China.
This is a developing story.
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