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Blockade at US-Canada Border Cleared, Full Impact on Trade Uncertain

Business Texting
3 min. read

This article is intended for informational purposes only and does not reflect political views in any way.

One of the key trade links between the US and Canada is now back open after a blockade shut down the route for nearly a week.

The Ambassador Bridge extents from Windsor, Ontario to Detroit, Michigan and is one of the main supply lines between the two countries. According to the associated press, this crossing accounts for 25% of all trade between the US and Canada.

Protests Block Border Crossing.

The protests were started as a pushback on vaccine mandates put in place by Canada, specifically for truck drivers who regularly cross the border.

Groups blocked traffic on the bridge for most of the week until Ontario Premier Doug Ford issued a State of Emergency in the province. Police stepped in Sunday night and cleared the bridge, allowing traffic to move again.

Premier Ford also announced plans to drop the province's vaccine requirements for truckers on March 1 if its COVID-19 hospitalization rates continue to go down.

Border Blockade Impact on Trade.

Now that the bridge is back open, it may take some time before trade gets back to normal.

The biggest impact has been on the auto industry. Ford, General Motors, and Toyota all said they had to stop production at some of their facilities due to lack of parts.

Ford already had plans to shut down some facilities due to chip shortages, related to ongoing supply chain issues.

Smaller shops could also see a ripple effect from trade being shut down for nearly a week. With 25% of all trade goods being stopped for that long, the true impact may not be felt yet.

As supply starts to trickle back to normal, there are concerns that some goods may not get to their destinations at all due to the disruption.

So far, the protests are mostly centered in Canada, but there is some concern that truckers in the US could start to stage their own protests in the coming days or weeks.

What Does it Mean for Your Business?

Right now, shops and manufacturers are just watching and waiting to see what impact this could have on supply, but there are some things dealers can do to stay on top of it.

Communication is key, not just with your employees, but with customers as well. Make sure you are reaching out.

Adopt a system, like a testing platform, so you can easily reach out with important information. Things are changing by the day, so you need to be able to talk with customers quickly and give them a way to contact you easily.

Be proactive. If a customer is waiting for a part or piece of equipment, and you know it may be delayed, make sure you reach out to them as information comes in.

For your employees, by having a system in place, to see who you have contacted or who has contacted you, can help avoid confusion.

When there is disruption like this in the supply line, it’s not clear when things will arrive, if at all.

Make sure you are staying on top of these situations and have a system in place to make communication easy and efficient.

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