In the frozen industrial heartland of London, Ontario, the heat of Washington’s trade policies is melting profit margins for Arctic Snowplows. For decades, the Canadian manufacturer has sent its bright orange steel blades south without friction, but a shifting geopolitical landscape has turned a once-open border into a financial barrier.

This struggle is not merely about snow removal; it is a stark case study in the collateral damage of protectionism. As the Trump administration heads toward its second year, the ripple effects of aggressive steel tariffs are upending established supply chains, offering a sobering preview of the volatility facing global exporters—including those in East Africa.

The High Cost of Barriers

Company president Mike Schulz, whose factory sits just 190 kilometers from the US border, described the situation as a logistical nightmare. The tariffs have forced the company to pass significant costs onto consumers, a move that is rapidly eroding their competitive edge in the American market.

Schulz noted that the tariffs add approximately CAD 500 (approx. KES 46,500) to the cost of a standard CAD 10,000 (approx. KES 930,000) plow. While that might seem like a marginal increase to a government bureaucrat, on the factory floor, it is a deal-breaker.

• Price Surge: A 5% cost increase on finished goods due to raw material levies.
• Market Loss: Long-time US buyers are cancelling orders, unwilling to absorb the tariff hike.
• Uncertainty: The company, founded in 1969, now faces an inability to forecast sales for the coming quarter.

“It’s a huge hit,” Schulz told AFP, gesturing to racks of unsold inventory as heavy snow fell outside. “It’s something we can’t afford to just absorb, and it’s something that customers in the States don’t want to pay.”

A Global Warning Shot

While the majority of US-Canada trade remains tariff-free under existing agreements, the specific targeting of steel highlights how quickly protectionist policies can bite. For Kenyan observers, the plight of a Canadian plow-maker serves as a proxy for broader trade anxieties. If America’s closest neighbor and largest trading partner cannot escape the dragnet of tariffs, developing economies relying on trade pacts like AGOA must remain vigilant.

Schulz admits the company is facing “very uncertain times” as sales plummet. The factory floor, usually buzzing with export orders, has become a waiting room for political resolution.

Ultimately, the friction at the US-Canada border proves that in a trade war, geography offers no protection. As Schulz looks at his unsold inventory, the message to the global market is clear: when giants wrestle, it is the specialized manufacturers—and their workers—who get crushed.