Don't wait: Prepare your waste budget for potential US tariffs

How will tariffs impact your waste management costs?

US tariffs are essentially import taxes that cast a long shadow over North American prices. Even with the current pause, your waste management expenses are squarely in their path. Understanding how is crucial for proactive budgeting.

Why tariffs mean higher waste costs for your business

Higher waste bills = Inflationary pressures hit waste services

Tariffs contribute to overall inflation. Waste management companies, like all businesses, face higher costs for essential operational components: trucks, specialized sorting equipment, and processing facilities. Crucially, according to The Globe And Mail, fuel costs are expected to be among the first to rise significantly. Provinces like Ontario and Quebec could see prices at the pump jump quickly because a large portion of refined oil, especially on the East Coast, is imported from the US. A rise in fuel costs, potentially as much as 10% according to some estimates (and potentially mirroring increases seen in areas with similar import patterns), will directly impact waste collection fleets. To maintain service levels amidst rising expenses, waste management providers will inevitably pass these increased costs directly to you in the form of higher service prices.

Recession risk = Budget cuts & pressure on essential services

Tariffs significantly increase the risk of a Canadian recession. Economic downturns mean tighter budgets across all sectors, including your business. While waste management is an essential service that cannot be eliminated, businesses can mitigate the impact of a recession through:

• Proactive waste reduction: Implementing strategies to minimize waste generation at the source.
• Optimized recycling programs: Ensuring maximum efficiency and participation in recycling initiatives to reduce landfill costs.
• Negotiating favorable contracts: Securing the best possible terms with waste service providers and locking in today’s rates for the future
• Exploring alternative solutions: Investigating options like composting and waste-to-energy programs where feasible.

Evirum can help you implement all of these strategies.

Waste company costs = Your increased fees & cross-border challenges

Canadian waste management companies, especially in Ontario, often rely on specialized equipment and cross-border solutions. A significant portion of Ontario's waste is exported to US landfills, primarily in Michigan. While Michigan's current tipping fees are low ($0.36 per ton), proposed increases to $5.00 per ton would dramatically impact Ontario businesses. Even for Quebec-based companies that primarily manage waste within the province (using landfills like Lachenaie near Montreal), any tariff-driven cost increases for equipment, fuel, or cross-border transport will impact operational costs. These increased costs for waste companies will directly translate to higher service fees for your business, regardless of your location.

Unreliable waste services: Supply chain disruptions & regulatory risks

Tariffs disrupt essential supply chains. Waste companies may face delays or increased costs in acquiring and maintaining specialized equipment, or accessing recycling markets (many of which are international or cross-border). Furthermore, proposed US legislation could restrict waste imports from Canada, adding regulatory uncertainty to cross-border waste flows. These disruptions can lead to:

• Unreliable waste collection schedules.
• Delays in equipment maintenance at processing facilities.
• Higher, less predictable waste service costs.

Costlier recycling programs: Undermining sustainability initiatives

Tariffs on materials like steel, aluminum scrap, plastic scrap/resins, paper, and pulp directly increase the cost and complexity of recycling. These materials are integral to both the recycling process and the equipment used. Maintaining or expanding your company's recycling and sustainability programs becomes significantly more challenging and expensive. The economic viability of various recycling streams can be undermined, forcing budget re-evaluations and potential scaling back of sustainability efforts. A weakening Canadian dollar, resulting from US tariffs, will further increase the cost of buying anything from the US.

Budgeting chaos: Currency fluctuations & economic instability

Trade uncertainty weakens the Canadian dollar, increasing the cost of goods and services priced in or linked to US dollars – including elements of your waste management contracts. Canada's retaliatory tariff package, while intended to protect Canadian industries, also contributes to trade tensions, destabilizing currency values and making financial forecasting extremely difficult. This creates unpredictable and potentially unmanageable budgeting for your waste management expenses, making long-term cost planning nearly impossible without expert guidance. Even if tariffs are short-lived, their effects on supply chains can linger for months.

Evirum: Your action plan for tariff-proof waste management and cost control

Don't wait for tariffs to impact your bottom line. Prepare now during this tariff pause. Evirum offers a clear, effective, and sustainability-focused plan to protect your business and control costs:

Waste cost analysis and tariff risk mapping

We conduct a detailed analysis of your current waste streams and service contracts, pinpointing exactly how potential tariffs and economic shifts could impact your specific waste budget. Evirum provides data-driven clarity and a precise understanding of your tariff-related financial risks in waste management. Understand your waste tariff risk – precisely and urgently.

Rapid waste efficiency and cost saving audits

Evirum's waste management experts conduct rapid efficiency audits of your current waste processes, identifying immediate, actionable opportunities to drastically reduce waste generation and boost recycling rates. If you’re not recycling today, this is your chance to immediately start diverting recyclables from your waste stream, generating savings and protecting yourself from future price increases. We can help you lock in a favorable recycling rate before prices go up. Get rapid, real waste cost relief – starting now.

Optimized waste service contracts

Evirum leverages deep industry expertise to ensure you secure the best, most cost-effective waste service contracts possible, even within volatile and uncertain markets. We analyze your current contracts, identify areas for optimization, and help you build more resilient and secure waste service agreements to mitigate tariff-driven price fluctuations. Guarantee truly cost-effective and reliable waste services – even with tariffs.

Dedicated waste management partnership

Evirum is your committed waste management partner. We help Canadian businesses maintain operations, control costs, and hit their sustainability targets in any conditions.

Act now: Secure your waste budget against tariff impacts with Evirum

Don't let tariff uncertainty disrupt your business operations or derail your sustainability goals. This tariff pause is your critical window to act decisively. Evirum is uniquely ready to partner with Ontario and Quebec businesses to urgently analyze your waste management operations, aggressively optimize waste-related efficiency, and build a demonstrably more predictable and rigorously cost-controlled approach to your essential waste management.

Sources:

• RBC Thought Leadership, Quick Read: What tariffs could mean for the U.S. economy: https://thoughtleadership.rbc.com/quick-reid-what-tariffs-could-mean-for-the-u-s-economy/
• The Globe and Mail, If tariffs do come for Canada, here's what would get expensive first: https://www.theglobeandmail.com/investing/personal-finance/article-if-tariffs-do-come-for-canada-heres-what-would-get-expensive-first/
• Waste Dive, Recycling, waste groups voice concerns over proposed tariffs' business impacts: https://www.wastedive.com/news/recycling-waste-groups-concerned-over-proposed-tariffs-nwra-rema/739159/
• Bridge Michigan, Michigan is No. 1 for trash, but Whitmer wants higher fees to curb imports: https://www.bridgemi.com/michigan-government/michigan-no-1-trash-whitmer-wants-higher-fees-curb-imports