London, Ontario-based Nova Sports Equipment Ltd. has been winning business in the competitive canoe market, in part thanks to tariffs.
But we’re not talking about tariffs designed to protect Canadian manufacturers. No, the assist is from sales to the European Union, according to Toronto’s Globe and Mail.
When the United States put tariffs on EU-made aluminum and steel, Europe retaliated with a 25 percent tax on U.S.-made canoes, according to the report.
CEO Chris Rath credits the initial uptick in demand for Canadian-made canoes to former U.S. President Donald Trump, whose aluminum and steel tariffs caused the EU to respond with a 25 percent tax on U.S.-made canoes.
“We have a bit of an advantage as a Canadian supplier to avoid that tariff, which is significant,” Rath told the newspaper. “Our business has doubled, but I think if I could have scaled up more, our business would have been significantly more than just double.”
Nova Sports, which makes Nova Craft Canoe products, has also seen a bump from consumers participating in outdoor activities like camping.
But while business is good, the company isn’t immune to supply chain issues. Rath explained that Nova Craft’s plastic product line uses a foaming agent that’s made only in China. He bought a six-month supply in October, but now that’s gone.
“Our plastics line has been shut down since about three weeks ago, with no indicators of when it might come back up,” Rath told the Globe and Mail. “We struggle every day with something that’s not available.”