New tariffs forced one Canadian business to halt U.S. sales

Overview

Canadian golf-cart/low-speed vehicle manufacturer Simolo Customs CEO Jeff Alis says new 50% U.S. tariffs on golf carts and similar vehicles took effect at midnight, immediately reshaping the company’s strategy.

Immediate impact and business response

Alis explains that the tariff makes U.S. costs highly unpredictable. He describes an example where:

• A shipment previously expected to face a relatively manageable tariff (about $450) later resulted in a much larger tariff for a shipment to Hawaii (about $4,800).

Because the tariff burden can swing dramatically, Simolo Customs adopted a policy of not shipping to or selling in the U.S., and instead refocused on Canada “day by day.”

How much it hurts (and why)

• The company previously sent about 25% of its vehicles to the U.S., so the change is expected to reduce revenue.
• Alis says demand has partially offset the loss: golf courses and fleet operators in Canada are reaching out more than before because the U.S. option is now more expensive or complicated.

Restructuring and new markets

Beyond strengthening the Canadian focus, Alis says Simolo Customs is pivoting to Europe:

• The company is working toward having its manufacturing approved to European road/safety standards so it can sell street-legal vehicles there.
• While Canada’s street-legal approval process may align with European requirements, Alis notes it still requires an application/process.

Government support

Alis acknowledges that Canadian tariff-related supports exist, but says they are not “cut and dry”:

• They involve significant paperwork
• They can include payback terms

He says Simolo Customs can accept these requirements, but must still navigate them.

Whether tariffs are temporary

Alis argues Simolo Customs can’t rely on tariff politics changing because U.S. tariff policy has been inconsistent (including periods of escalation and removal). As a result, the company plans to treat this as effectively requiring long-term strategy changes, prioritizing Canada rather than waiting for reversal.

Why Canadian demand is rising

Alis claims:

• Previously, much of the supply for the golf-cart market came from the U.S.
• Simolo Customs is the only Canadian golf cart manufacturer, operating for 16 years
• A recent Canadian course order of 160 vehicles came partly due to the current tariff/political environment

He also says customers and golf courses are increasingly choosing Canadian products.

Presenters or contributors

• Jeff Alis, CEO, Simolo Customs
• Unidentified interviewer/host