Full Breakdown
U.S.-Canada Trade Tensions Ripple Through Great Lakes Shipping
By Drooid · · How we work
Impact of Tariffs on Great Lakes Shipping
U.S. tariffs on Canadian steel and iron ore have sharply reduced binational cargo volumes on the Great Lakes-St. Lawrence system. Through August, vessel traffic at the Duluth-Superior port was down 23% from a year earlier, with U.S.-flagged ship arrivals falling about 19% and Canadian carrier arrivals sinking 37% (data provided by the Duluth Seaway Port Authority). Domestic iron-ore shipments from Duluth-Superior are running 40% below the 2025 pace, while coal volumes, which peaked at 4.7 million tons in 2025, are projected to fall to about 500,000 tons this year—the lowest level since 1973.
Background: An Integrated Cross-Border Waterway
The 2,300-mile Great Lakes-St. Lawrence trade route moves roughly 200 million tons of bulk commodities annually, linking U.S. and Canadian industrial regions. The system’s governance is split: Canada controls 13 locks, the United States oversees two, and long-term contracts dominate most trade, insulating spot-market rates from immediate tariff shocks.
Data Highlights
- Iron-ore tonnage: down 40% from 2025 levels, primarily due to reduced northbound shipments to U.S. steel mills.
- Coal: 4.7 million tons in 2025; projected 500,000 tons in 2026, the lowest since 1973.
- Port traffic: overall vessel movements down 23%; U.S.-flagged arrivals down 19%; Canadian arrivals down 37% (Duluth Seaway Port Authority).
- Economic context: the Great Lakes region supports a $6 trillion economy, with 200 million tons of cargo moving annually (Hamilton, HOPA).
Official Statements & Responses
President Donald Trump signaled a possible “fairly soon” deal with Canada while also issuing fresh threats when questioned about Ottawa’s EU overtures. Canadian Prime Minister Mark Carney told Bloomberg that Canada is “ready to sit down” for talks. Unifor national president Lana Payne credited Canada with building the seaway, emphasizing its joint-effort history. Lake Carriers’ Association president Jim Weakley argued that Canadian regulations and subsidies create a “monopoly” that disadvantages U.S.-flagged vessels, though he declined comment on the current tariff dispute.
Verbatim Quotes
- “Hope isn’t a strategy, but we would expect that this trade war comes to an end at some point and we can get back to regular business,” — Kevin Beardsley
- “I certainly appreciate that the United States could probably survive on less trade with Canada, but I also think that ultimately drives up the costs for everybody,” — Ian Hamilton, president and CEO
- “Canada was feeling really good - it had made a huge contribution to the Second World War and it really felt it was mature,” — Ron Stagg
- “There’s not a desire to build far from home, it’s just been the reality for the past several years that there’s no available capacity.” — Jason Card