Tariffs blamed for pickup truck purchase over-expenditure

Tariffs are having an impact in the Town of Amherstburg, based on a report to town council.

Council members voted Monday night to approve an over-expenditure of $5,596.80 for a new dump truck for the roads department, bringing the total cost not to exceed $377,789.09. According to a report from manager of roads and fleet Eric Chamberlain, town council awarded the purchase of the new dump truck to Viking-Cives Ltd. in January. He added that on April 23, administration received correspondence from the company that the cost of the purchase had increased by $5,500 plus HST resulting from tariffs.

The overage will be funded through the fleet reserve.

This purchase provides a replacement dump truck with a winter package to assist with winter operations in the urban areas of Amherstburg core. The increased cost is caused by U.S. tariffs being applied to the auto sectors. If the Town does not continue with this purchase, then the purchase would have to be re-tendered and the order process would have to be restarted which would increase the time to receive the new dump (truck),” Chamberlain stated. “In addition, the re-tendering does not prevent the potential for increased cost due to the on-going tariff conflict.”

If the purchase was delayed to a later time, Chamberlain said there is a risk of a cost increase and further delivery delays.

“In addition, the current dump truck is beyond is useful life and requires replacement. The current truck is a 2009 C7500 GMC and the fleet mechanic has raised concerns on the ability to find parts for future maintenance,” he wrote in his report to town council.

Chamberlain also stated the life expectancy of fleet should be between 7-10 years and the current 2009 truck is 16-years-old.

Councillor Molly Allaire asked about the additional increase in tariffs put in place by U.S. President Donald Trump, with administration saying the report deals with the original 25 per cent increase on steel and aluminum.

Councillor Don McArthur wanted clarification on where the tariffs come from and how it is coming about. CAO Valerie Critchley said she was of the understanding it was “a combination of the steel and the component parts.” She admitted it is a complicated matter, noting parts are built here, going to the U.S. and tariffs are put in place, then come back to Canada.

McArthur said there was a contract with the company for a set price.

“We did have fixed price contract with these folks,” said McArthur.Critchley said the purchase was part of a procurement done through a government group purchasing, with a clause being if there are any more duties or fees, they could be passed on to the town.

Deputy Mayor Chris Gibb wanted to ensure there was documentation in place should upper levels of government have the ability to help out with costs.

“Could we start keeping a tally of what tariffs we’re being charged just in the event the province decides to step up and help us out in the future?” Gibb asked.

“Absolutely, we could do that,” responded Critchley.

Tariffs blamed for pickup truck purchase over-expenditure

By Ron Giofu