The RV industry is just beginning to emerge from the nightmare of years of declining sales. As we reported earlier, the RV Industry Association (RVIA) reported that sales in 2024 finally hit a positive mark—sales up 6% compared to those in 2023. But now the industry has a major fright: A large chunk of U.S.-made RVs are exported to Canada. With the apparent trade war shaping up due to import tariffs, U.S. RV manufacturers are facing the potential for profit losses and layoffs.
Import tariffs hit tomorrow
By Presidential order, a 25% tariff on products from Canada will be imposed tomorrow, Feb. 4. Tariffs on Mexican imports were likewise to start tomorrow. A last-minute move by the government of Mexico has pushed the implementation date off by a month. However, Canada has indicated it will retaliate with its tariffs on products from the U.S. These seriously threaten U.S. RV manufacturers.
Today the RVIA released an official statement regarding import tariffs on products from Canada and Mexico. This statement (via RVBusiness.com) is from RVIA’s President and CEO Craig Kirby:
“The RV Industry Association is the leading trade voice of the $140 billion dollar RV industry, representing over 500 manufacturers and component and aftermarket suppliers who together produce 98 percent of all RVs made in the United States, and approximately 60 percent of RVs produced worldwide. We are concerned about the potential for retaliation on U.S. exports of RVs by Canada and Mexico.”
RV exports to Canada worth $1.38B
Kirby continued: “The RV industry is a major employer in the United States, and Canada is the largest international buyer of U.S.-made RVs. In 2024, the United States RV industry shipped 29,489 units to Canada, with an estimated wholesale value of $1.38 billion and an estimated retail value of $1.735 billion. The vast majority of RVs sold in Canada are proudly made in America. The Canadian government has already announced its intent to retaliate on United States recreation vehicles, which could have a chilling effect on RV sales to the industry’s largest international trading partner.
“Mexico also serves as a critical partner in the supply chain for the U.S. RV industry, and we are concerned about the effects that disruptions to the supply chain could have on RV manufacturers, suppliers, and our dealer partners. After several years of economic uncertainty and headwinds, the RV industry is finally seeing some green shoots in terms of growth, and we hope that the Administration’s policies will strengthen American industries like ours.”
RVIA wants to have it both ways
Apparently the RVIA, while worried about the effects the potential trade war from import tariffs will have on its member manufacturers, still wants it “both ways.” The RVIA statement continues:
“We applaud the Administration’s actions to close the de minimis loophole, which Chinese producers have exploited to undercut American businesses in the RV aftermarket sector. American RV aftermarket suppliers have been losing millions of dollars to low-quality imports flooding in from China, and this action will force Chinese producers to fairly compete with American companies.”
The “de minimis loophole” that Kirby references is one that allows foreign importers to ship products into the U.S. duty-free, provided the shipments are below a given monetary value—$800. We pointed out that closing the de minimis loophole could mean soaring costs for RVers who buy repair parts for their rigs. Some of our readers pointed out that some parts just aren’t available from U.S. manufacturers.
RVIA wants a “quick solution”
RVIA’s Kirby wound up his statement this way: “We support the Administration’s efforts and commitment to protecting U.S. workers and jobs and keeping Americans safe, but fear that the retaliatory tariffs have the potential to harm American workers across the RV industry. We hope that the Trump Administration and our international trading partners can quickly work together to find a solution that will benefit American industries and workers while ensuring the safety of American citizens.”
Just how many jobs could be lost, and how deeply RV industry profits could be hit, remains to be seen. Hang on, the ride has just begun.
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##RVT1195b
Thank you, Russ and Tina, for sharing RVIA’s plea. One thing about imports and exports that seems to get overlooked is that imports are produced by resources in another country. When they are imported then similar U.S. resources can be used to produce something else, or merely saved for use later. Alternately, when exports leave the US for another country it allows foreign resources to be used to produce other things, or saved for use later. Thus, trade wars have many unintended and unpredictable consequences. Have a great week and safe travels!
Indeed Neal, I do not disagree with your very rational comment. I do however think that fair trade is an important component of free trade. The most blatant example, IMHO, is that GM, FORD and Chrysler should have equal and identical opportunity to European markets as BMW, Porche and Mercedes have to American markets.
Ozepmic is $28.00 in Italy and $450.00 here, which now that I think about it is a great excuse for travel to Italy. LOL.
California wines to France…. same as autos.
Cheers Neal.
🚘✈️🍕🍷all in 1 post.
Very welcome, Cancelproof. Safe travels to Italy or wherever else you choose. Cheers, Cancelproof! 🙂
Maybe what the RVIA needs to do is encourage American businesses to make good quality parts for RV’s that last and are reasonably priced. Instead of installing cheap Chinese parts that don’t last or break.
We all know the American consumer pays higher prices from tariffs. The same companies which received the largest tax giveaway ever in 2017 and will be extended this year.
More and bigger tax cuts should be coming now that we have found over $1 trillion of laundered fraud and waste.
Caused by BOTH parties.
The USA declared a trade war on Canada for what reason?
The USA wants to make Canada the 51 state. Over my dead body.
Canadian feels betrayed by our neighbours to the south over this trade war.
The tariffs implementation from both countries has been paused for one month.
Friends don’t treat friends this way.
Proudly Canadian 🇨🇦🇨🇦
Cooper
Which is exactly why the tarrifs were paused, too give your side a chance to be a better neighbor. Ball is in your court, always has been. Be a good neighbor and pay your fair share. This trade war, which is unwinnable for Can., can be avoided by your actions. Just the facts Cooper. Polievre will be the first good step IMHO, he seems very pragmatic.
Most people couldn’t tell you what potash is, but every American farmer knows. It’s the backbone of their fertilizer supply, making sure crops—corn, soy, wheat, the big three—get the potassium they need to grow.And here’s the kicker: America doesn’t have much of it.
They import over 80% of their supply, and Canada, well, we control nearly 40% of the world’s reserves. Saskatchewan alone produces over 30% of the global market.
30%!!!!
The tariffs would really hit the automobile industry hard because the motor vehicle industries of the U.S., Mexico and Canada are very intertwined,” Marcus Noland, trade policy expert at the Peterson Institute for International Economics, told CBS MoneyWatch. “Parts will cross the border seven to eight times before final assembly, and the tariffs are applied every time a part crosses — so costs would go up very quickly.”
Canada didn’t start this economic war…what it did do is galvanized a nation.
its a lose lose for all.
god help the USA and Canada
cooper
Love the conversation Cooper. I was born and raised in Southern Saskatchewan so yup, you are 100% correct on Potash. You have it, we need it.
Canada spends $30 billion on national defense on our shared continent compared to $950 billion for USA for our shared continent. My point is that the entirety of the conversation is soooo much larger than Potash and Autos. The entirety of mutual friendship needs to be in our vision whether it is trade, defense or travel.
Doing simple math here but that makes USA 30X of CA. for national defense spending but only 8X the population.
CAN. Pays 80% less for prescriptions that are developed in the USA with the USA taxpayers paying for all that R&D so Canadians can have cheap drugs.
CAN. has quasi *free medical healthcare.
Do you think all that low cost/*free medical is not being subsidized by the USA thru Canada not needing a stronger military?
Can. should be sending USA potash for FREE as a thank you for not having to learn the Russian language in the 70s and 80s…., or for all that lowcost Healthcare we subsidize.
No one wants a trade war.
Your Welcome. 🇺🇲🇨🇦
The basis, building blocks and foundation for any friendship is trust.
Friends don’t treat friends this way.
Neighbours help neighbours.
Canadians feel betrayed by the USA.
Thats all I have to say.
Be safe
Cooper
Betrayed….? Strange way to say “thank you, we will do better in the future”
Safe travels Cooper, this too shall pass.
🇺🇲+🇨🇦= mutual success.
t-hrump’s tariffs hit the vehicle manufacturers…and consumers hard last time he pulled the stunt. Along with anything else made from steel…yet the ding dongs still voted for these people again. Priceless.
Both countries right now have leaders that are more interested in division and creating propaganda to make themselves feel better. Canada and the USA have been allies for a long time and suddenly we want to destroy each other. Sad state of “my truth” thinking
5X5 on that.
What happened to the shortage of RV’s 4 years ago?
RVs are not essential. Quit crying and concentrate on the big picture. Short term profits vs. rebuilding America.
Canada already has tariffs on some of the products sent to the US. I was an electrical contractor for 34 years. One of my customers was Ray Barton Racing Engines in Robesonia, Pa. Ray was from Canada. He started building engines up there. Most of his customers were in the US. They urged him to move here because when the engines were shipped, they were held up at the border until the tariffs were paid. At the urging of his customers, he immigrated here about 25 years ago.