Protests Along the Canadian Border Could Cause Serious Delays for Carmakers
Trucker protests along the U.S.-Canadian border are causing supply chain delays that are likely to increase the price of new and used vehicles in the U.S. Find out why truckers are going on strike, and how the roadblock at the Ambassador Bridge will influence vehicle prices.
have been on strike now for the past several months, affecting the U.S.’s already beleaguered supply chain. With car prices for both new and used vehicles experiencing high rates of inflation, automakers are again short-handed on key car components to help them produce vehicles.
Whether or not the strikes will end, it’s important to note why truckers across the U.S. and Canada are on strike, and how these actions will affect drivers and the car market in the U.S.
What’s causing truckers to protest?
None other than vaccine mandates from multiple trucking companies are causing these freight haulers to protest. Many of the truckers feel that the
are unnecessary and infringe on their personal liberties.
This leaves many freight companies in a tough position, as thousands of truck drivers across the U.S. and Canada have created what’s been dubbed as the “Freedom Convoy 2022”, blocking a key transportation hub known as the Ambassador Bridge.
Though most of the protest is fueled by indignation at the vaccine mandates imposed by the American and Canadian governments, the
notes some of the truckers are seeking to end their independent contractor status, hoping to become recognized as employees and receive the subsequent benefits that would be offered by many of the companies that hired them.
reports, the trucker blockade will only serve to increase the inflated prices of used and new vehicles in the U.S., largely in two ways.
This trucker strike will affect the car market in that used and new vehicles that were manufactured in Canada can no longer make their way into the U.S. The other factor is that key components for new vehicles, such as raw goods like polymer plastics or computer chips, will be delayed in their entry into the U.S.
With the Canadian government working with local officials near the border to clear the Freedom Convoy out of the way, it’s hoped that the strike will end soon. The Canadian government has threatened to impose fines of up to $100,000 and up to a year in jail for truckers who refuse to disperse from the roadblock.
Will vehicle prices go down?
MORE: New Car Prices Hit All-Time Record High
While 2022 is just getting started, inflation rates in the car market have fallen to just 1.5% through January. However, the road blockade is predicted to send new and used vehicle prices back up again.
The U.S. is still short 2 million vehicles, currently sitting at a nationwide inventory of 1 million when, on a normal year, the average number is 3 million. While the trucker brigade isn’t entirely to blame, the roadblocks and nationwide protests certainly don’t help.
The outlook for the year is uncertain, but it’s still possible that new and used vehicle prices will go down as the year unfolds. Though, currently, it’s hard to know.
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