A threatened 50 per cent tariff on Canadian road salt imported into the United States is creating winter maintenance budgeting uncertainties on both sides of the international border. In the U.S., there’s a clear likelihood that it could drive up operating costs for private contractors, municipalities and highway departments. In Canada, the snow and ice management sector is weighing the positive potential for more domestic supply against a concern that major producers could raise prices here so they can absorb some of the hit on American customers.
Regardless, commercial and residential property owners would be in line for inflationary impact if winter takes a stormy turn again in 2027. Last year’s eventful weather propelled commodity costs from the range of CAD $100 to $120 per tonne up to CAD $400/tonne, as soaring demand from Ontario to Atlantic Canada and throughout the U.S. northeast depleted stockpiles and gobbled up salt mines’ output.
“Private contractors are deprioritized when there are shortages in supply,” observes Joe Salemi, executive director of Landscape Ontario, an industry association representing the landscaping, horticultural and ice and snow management sectors. “We’ve seen it two years in a row now. They are the last on the list to get new salt and they are the most susceptible to price increases.”
“It’s a commodity and there’s only so much that can be produced in a year. If there’s a lot of snow, the price is going to go up,” says Jeremy Kirkham, business development specialist with the winter maintenance equipment and service provider, Storm Solutions Plus. “Even if companies could afford to buy the amount of salt they need for the entire winter in advance, most of them would have nowhere to store it.”
In the U.S., the Salt and Ice Management Association (SIMA), a trade association for winter maintenance contractors and suppliers, had already been advising its members to expect competition for supply from high-volume public sector procurers that are replenishing their road salt stocks after a remarkably snowy winter. The spectre of a 50 per cent tariff on Canadian imports further stresses a market that relies on non-domestic producers for upwards of 45 per cent of its annual consumption.
Notably, the world’s most productive salt mine in Goderich, Ontario, on the shore of Lake Huron, has the capacity to generate up to 9 million tons (8.16 million tonnes) annually. Three other mines — located in Windsor, Ontario, the Magdalen Islands, Quebec, and Pugwash, Nova Scotia — are also among North America’s most prolific with a combined capacity of up to 5.3 million tons (4.8 million tonnes) per year. Meanwhile seven salt mines, scattered throughout New York State, Michigan, Ohio and Louisiana, collectively account for most of the approximately 16 million tons (14.5 million tonnes) of annual output within the U.S..
“There was a salt shortage which escalated prices significantly at the end of the winter. Inventories right now are low. So salt will probably be harder to find this year, and that will be exacerbated if there are a couple of early storms,” reports Martin Tirado, SIMA’s chief executive officer. “Certainly, the Goderich, Ontario, mine is a significant distributor of salt for ice and snow melt so that’s concerning. If your salt is purchased from there, that’s going to be 50 per cent more expensive, and, essentially, that’s going to be passed on to consumers.”
Logistical advantages shield competitiveness
Salt/pure sodium chloride is among hundreds of Canadian products and commodities tapped for a 50 per cent tariff when imported into the United States, which is slated to kick in Aug. 19 unless the White House administration strikes down the order. This professed retribution for three of Canada’s trade measures would target nearly 30 per cent of U.S. road salt imports, based on averages for the years 2020-2023, or roughly 13.5 per cent of its total consumption in that period of relatively benign winters.
Other prominent outside suppliers to the U.S., in Chile, Mexico and Egypt, may not be positioned to grab market share away from Canadian product even with a competitive edge on the commodity price. Logistics are also a key consideration for a product that weighs 1,500 kilograms per cubic metre or 1 ton per cubic yard.
“It’s really expensive to move. Shipping can be the largest share of the cost,” Salemi affirms.
Barges are generally a preferred means of transport to cover longer distances since they can carry about 80,000 tons, but that also comes with fees for docking at the port and offloading the cargo. From there, rail and/or trucking is required to get it to its destination. Additional weather-related challenges for getting supply from southern locales to where it’s in demand can pop up in the winter.
“If the Mississippi freezes over and they can’t get barges out of (the port of) St. Louis, it still might be cheaper to get if from Canada, even with a 50 per cent tariff, than trucking it up from the south,” Kirkham hypothesizes.
Logistical and operating efficiencies underpin the business case for the Great Atlantic Salt Project, a new mine under development in St. George’s, Newfoundland and Labrador, with expected capacity to produce up to 4 million tons annually. A recent pitch to prospective investors from the development proponent, Atlas Salt, highlights a location that allows for delivery to Boston within three days versus the typical 14-day journey from Chile or Egypt.
As the first new salt mine to open in North America since the 1990s, the developers also tout modern technologies and all-electric operations powered via Newfoundland and Labrador’s low-carbon, hydroelectric-based grid. The salt deposit sits 180 metres (590 feet) below the surface versus anywhere from 350 metres (1,148 feet) to 700 metres (2,297 feet) at the seven largest U.S. mines.
SIMA is now considering whether to plea to decision-makers for salt to be exempted from the tariff. Tirado argues it’s not an effective stimulus for the White House administration’s stated agenda to spur investment and production in the U.S..
“Salt is not a commodity that’s mass produced and can be produced very quickly. If you’re trying to find more domestic supply in the United States, that takes exploration and mining, and multiple years to potentially add new resources for rock salt,” he submits.
Compass Minerals, owner/operator of the Goderich mine, is a U.S. headquartered publicly traded company. Stone Canyon Industries, a California-based industrial holding company, owns several of Canada’s other major salt mines, operating under the Windsor Salt and Morton Salt brands.
Varying supply and price scenarios
Many Canadian customers of those U.S.-based multinationals would prefer to see more of the product stay in this market, particularly during seasons like the winters of 2026 and 2025. Salemi recalls his members’ frustration earlier this year as they watched steady exports from the Goderich mine to comply with the company’s contractual obligations in the U.S., while a spate of storms that commenced early then continued to hit, often simultaneously, in different areas of the province completely depleted stockpiles at all of Compass Minerals’ regional salt distribution centres.
“The company was fulfilling its contracts, but it was one of those situations where it certainly felt like U.S. shipments were being prioritized,” Salemi says. “In times like that, we would hope that areas that need supply would have been prioritized over supplying orders that are coming from somewhere else that may not necessarily be in a critical shortage the way that we were.”
Similarly, Kirkham tempers his enthusiasm about the prospects of new supply from Newfoundland and Labrador with the qualification that it might not be westward bound.
“Are they going to ship it up the St. Lawrence or is it going to go down to Massachusetts, Maine, New Hampshire and places like that?” he muses. “If the tariff does go on, hopefully it keeps more of our salt here. With the amount of salt that the Goderich mine produces, we should never run out of salt in Ontario.”
Yet, there’s a flipside to that hope. Canadian-based producers could adjust their prices on both sides of the border — a higher profit margin in Canada would provide more flexibility to keep prices lower in the U.S. and reduce the impact of adding on a 50 per cent surcharge. The U.S. administration’s tariff announcement and looming deadline for imposition also injects uncertainty into the period when many winter maintenance contractors are procuring supplies and negotiating contracts with clients.
“We’re not sure if the tariffs are actually going happen. We’re monitoring and advocating, but we don’t have any of the answers,” Salemi acknowledges. “This is the time when preparations for winter are happening and, at the exact same time, contractors are now having to worry about what Compass Minerals will do if tariffs are applied on salt.”
Winter maintenance service providers on both sides of the border are advised to pay attention to the factors they can control. SIMA recommends that contracts with clients include clauses to cover the possibility that salt may be unavailable, and to ensure flexibility to pass through price increases. Service providers are urged to secure a full season’s worth of salt supply as soon as possible, and to consider entering arrangements to share storage facilities with other companies, if that makes early procurement more feasible.
“This is a time when it’s even more important than ever to make sure you’re not over-applying. Make sure application rates are correct based on surface temperature, air temperature and moisture,” Tirado stresses.
“Condo corporations and commercial property managers can talk to their winter maintenance vendors and partner together with them to adopt liquid treatments,” Kirkham suggests. “Then they’re only using 23.3 per cent salt instead of 100 per cent salt, saving their infrastructure and it’s better for the environment.”
