The Importance of North American Free Trade for Businesses
Here at Thunderbird Plastics, we have been suppliers of great, affordable, and reusable injection-moulded plastic solutions across North America since 1970. The interconnectedness of the North American markets is integral to the success of our business.Recent political discussions surrounding tariffs on Canadian imports into the United States market have raised concerns about the challenges that businesses like ours would face if trade in North America were no longer free. Now, more than ever, it is crucial to uphold free trade for businesses, consumers, and the prosperity of regions that are unbound by borders. 
The upcoming administration has been vocal about revisiting existing trade agreements with Canada and has proposed quite steep tariffs of 25% in an effort to benefit and prioritize American manufacturing. These declarations have inspired us at Thunderbird to discuss the benefits of North American free trade.
The History of North American Free Trade
Free trade agreements like NAFTA (North American Free Trade Agreement) and its successor, the United States-Mexico-Canada Agreement (USMCA), were established to reduce barriers to trade and stimulate economies across the continent. These agreements have enabled the seamless flow of goods, services, and raw materials without being hindered by the borders across Canada, the United States, and Mexico. For us at Thunderbird Plastics, these agreements have allowed our business to thrive. 
Most of our customers are located across the border from us, and the cost-effective movement of our products has been integral to our ability to serve our customers in multiple countries efficiently.
The Current State of Free Trade in North America
Shortly after the recent election, the upcoming administration declared plans to impose a 25% tariff on all imports from both Canada and Mexico in an effort to bolster American manufacturing while also citing concerns over illegal immigration and the movement of illegal drugs into the United States. The reason stated for the tariff is that both Canada and Mexico have not made sufficient efforts to mitigate these issues. On December 27th, 2024, Canadian Finance Minister Dominic Leblanc and Foreign Affairs Minister Mélanie Joly met with the USA’s nominees for Commerce and Interior Secretaries in Florida to discuss Canada’s proposed efforts to combat illegal drug trafficking and illegal immigration. The discussions emphasized the negative impact on the economies of both countries, and representatives from both sides have decided to revisit this topic in the coming weeks. Earlier in December of 2024, Canada pledged $1.3 billion CAD over the next six years to strengthen border security, and it is yet to be seen whether this investment is enough to avoid such steep tariffs.
It is clear that the tariff declarations will have unintended consequences for both the U.S. and Canadian sides. Over 50% of crude oil imports to the U.S. are from Canada, and a 25% tariff could lead to a potential increase of about a dollar per gallon for American consumers.
How Free Trade Fuels Our Business
Our ability to distribute our high-quality agricultural totes, harvesting bins, transportation lugs, and more is heavily reliant on an un-barriered and integrated supply chain. Free trade allows us to maintain competitive pricing for our clients and deliver our products in a timely fashion.
About 60% of our client base is from the United States, and we believe that these clients should have access to a market that is full of options because it is not bound by the border.While the American government aims to protect American jobs and industries, these proposed measures risk unintended consequences. Some small and medium-sized businesses would not be able to restructure and recover, while larger industries may face layoffs, labor shortages, and lower-quality products. Across all markets, it would reduce innovation and competition, cause supply chain disruptions, and lead to higher costs for producers and consumers.
Broader Implications for Erosion of North American Free Trade
The erosion of USMCA free trade principles will have a predictably negative impact on North America’s economic vitality and competition in not only the home market but the global market as well. 
The disruption of cross-border supply chains for larger industries like automotive, manufacturing, and agriculture would segment and disrupt corporations that are built on operations that are not hindered by borders.
The ripple effects from decades-long, established supply chain and labor operations would lead to an energy crisis, a shortage of goods and services, and a shortage of labor as major industries scramble to restructure operations within the confines of their nation.As industrial operations become more costly, it is consumers who necessarily are left paying more, leading to greater inflation and economic instability.
Our Stance on North American Free Trade
Here at Thunderbird Plastics, we take the stance that North American economic integration, a decades-long reality that helped establish our current industrial environments, needs to be strongly upheld. If the upcoming administration’s declarations become a reality, we are risking a trade war where a Canadian counter-tariff on U.S. imports leads to an increasingly devastating trade conflict. We encourage our clients and business partners to support free trade across North American borders by staying informed about initiatives aimed at preserving our economic stability.
At Thunderbird Plastics, free trade is the backbone of our ability to deliver our exceptional agricultural, waste/recycling, aquaculture, and construction supplies. Keeping our costs and production streamlined allows us to innovate and allocate the resources to offer custom moulding services. Streamlined shipping costs allow our clients to receive their purchases in a timely manner and send products back to us for recycling at the end of their useful life. Explore our expertly engineered product line HERE or read about our custom moulding services HERE to bring your bespoke design to life. Call us at 888.77T-BIRD or email us at info@thunderbirdplastics.com.
