In for nasty weather…
June 3, 2025
First, our hearts go out to the folks in Saskatchewan, Manitoba and Newfoundland. The prairies had a rushed mass evacuation last week as the winds shifted and sent wildfires racing across the land. Fires also struck in Newfoundland in the Churchill Falls area. At the same time, Ontario and Quebec were cool and overcast with plenty of rain. Environment Canada predicts a hot summer is ahead but in recent years, we have started to experience extreme weather events more frequently. One aspect of that is the significant rise in our property insurance rates. I suspect you have noticed that.
Also last week, we were bracing for more tariff escalation but on Wednesday evening, the United States Court of International Trade declared that president Trump had exceeded his authority when he laid on a wide range of tariffs on what he called “Liberation Day”. By Thursday morning, the markets were taking off thinking tariffs would be stopped but they didn’t fly far before the Trump administration launched an appeal that left the tariffs in place until the courts could hear the cases.
By the end of the week, U.S. stock futures had turned down and oil dropped nearly U.S. $1 a barrel as fears that President Trump’s trade war will gut corporate profits. Nasty weather is hitting the global shipping industry and reportedly, the docks in Los Angeles are very quiet. Companies seem to have boosted trade as much and as fast as possible to ship products ahead of the imposition of tariffs but now shipments have slowed dramatically due to the uncertainty around tariffs and industry’s inability to price their goods.
By the start of July and high-season for boating, there may again be product shortages because of the tariff situation and the battle over the decision by the Court of International Trade. That may take quite a while to resolve. But because this could throw out the bulk of Trump’s tariff agenda, it seems likely that the administration will escalate the case to the Supreme court for a decision. Customarily, the Supreme Court goes into summer recess at the end of June or early July. Statements from the Whitehouse have insisted that the president will not be denied his trade agenda so we can expect a major push on this issue.
Going back to a column in News Week from a few weeks ago, we asked the question, could your business manage an increase of 10%? Or, even 20%? Warm summer weather and all the political upheaval we are experiencing here, may bring us a record summer of customers and sales but only if we are stocked and staffed to be able to meet the demand.
I certainly hope we are able to navigate our way through this nasty weather. The summer of 2025 may make navigating COVID look easy by comparison.
Andy Adams – Editor
