Local sourcing is about buying materials, products, or services from companies within the same geographic region as your business. The benefits include shorter lead times, lower transportation costs, and greater supplier visibility. Local sourcing can also help you to avoid tariffs, at least if you define “local” as being within your own country or free-trade area.
As tariffs continue to affect supply chains, you may be wondering if Elasto Proxy can locally source industrial rubber products. The short answer is “yes.” The long answer requires an explanation since we’re a multi-national company with locations in Canada, the United States, and Europe. That long explanation is what this article is all about.
🇨🇦 Elasto Proxy in Canada
Elasto Proxy is based in Boisbriand, Quebec, a suburb of Montreal. Our headquarters is also our main production facility, and it has a warehouse where we store rubber products for distribution or fabrication. Elasto Proxy also has a branch in Newmarket, Ontario, which is north of Toronto. This facility has a warehouse, and our two Canadian locations enable us to serve the entire country.
Where do the rubber products that these branches distribute and fabricate come from? Some come from within Canada, but others are shipped to us from Asia, Europe, or the United States. Thanks to the Canadian Free Trade Agreement (CFTA), there are no tariffs on interprovincial trade. There are, however, Canadian tariffs on rubber products that are imported from the U.S.
Naturally, this concerns our Canadian customers. The good news, however, is that we can and do import tariff-free rubber products from Europe and Asia. The Comprehensive Economic and Trade Agreement (CETA) between Canada and European Union (EU) ensures our tariff-free European supply. In fact, many of our leading suppliers are in EU nations.
As for Asia, you may be concerned about recent Canadian tariffs on Chinese goods. Those levies do not cover the rubber articles that we distribute or fabricate. It’s also worth noting that as of January 2025, Canada’s leading sources of imported Asian rubber were Indonesia, Thailand, and Vietnam, in that order. Canada does not have major trade disputes with any of those nations.
🇺🇸 Elasto Proxy in the United States
In the United States, Elasto Proxy has a branch in Simpsonville, South Carolina: the fastest growing state in the nation. Simpsonville is located along major highways and just a few hours’ drive from Charlotte, North Carolina and Atlanta, Georgia: two growing cities. Our Simpsonville location has a warehouse as well as a manufacturing facility that can cut and bond finished rubber products.
For our U.S. customers who are concerned about tariffs, we want you to know that Elasto Proxy USA can source domestic rubber. To be clear, these products are manufactured within the U.S. by companies from the Northeast to the Midwest and on both the East Coast and the West Coast. The U.S. rubber industry is alive and well, and we source sheets, rolls, extrusions, and molded products.
What about the ingredients in these rubber materials? Sometimes, ingredients (such as carbon black) come from countries against which the U.S. has imposed a tariff. Except for China, however, that tariff is generally 10%. The bottom line is that there isn’t a tariff that applies to a shipment of rubber products from Simpsonville, South Carolina to anywhere in the USA.
🇪🇺 Elasto Proxy in Europe
Elasto Proxy’s European branch is in Sint-Niklaas, Belgium: an EU nation. Consequently, shipments from Canada to Belgium are received tariff-free under the CETA agreement. Plus, any of the rubber that’s source from companies within the EU is exempt from tariffs. Given that many of our major suppliers are European, our Belgian branch is well-positioned.
Elasto Proxy Europe has a warehouse, but it does not have a manufacturing facility. That’s not an issue for our distribution customers, but what if you need fabricated products like bonded gaskets? Elasto Proxy Canada and Elasto Proxy Europe both buy rubber materials from many of the same suppliers, and the finished gaskets that we make in Canada arrive tariff-free in Europe.
Local sourcing of industrial rubber products is possible, but you need to know where to look. Whether your business is in Canada, the U.S., or an EU nation, Elasto Proxy can help you to minimize the effects of tariffs. We can’t eliminate international uncertainty, but we do have the sourcing strength and logistical expertise to protect your interests.
