The Canadian Trucking Alliance (CTA) said that the impact of the incoming U.S. tariffs on steel and aluminum would be “fatal” on fleets that move these products.
U.S. President Donald Trump recently issued an executive order stating that a 25% tariff would be applied on March 12.
Prime Minister Justin Trudeau said that he will be working with international partners and friends “and if it comes to that, our response, of course, will be firm and clear.”
Both the Canadian Steel Producers Association (CSPA) and the Aluminum Association of Canada (AAC) are sounding the alarm on this issue, indicating that the long-term ramification would be devastating if these tariffs are applied. One of the associations has also publicly discussed the potential need for short-term government aid to get companies through the potential crisis.
“Canada’s trucking industry plays a critical role in the movement of steel and aluminum products, and the impact on many of these fleets would be fatal,” CTA president Stephen Laskowski said in a news release.
“While it is unclear what assistance the trucking industry can provide in addressing the security concerns outlined in the presidential order, CTA stands ready to support CPSA and AAC in developing a plan to avoid these tariffs.”
Relief packages or stimulus measures
CTA and its provincial association members would welcome a discussion with all levels of government to discuss the potential development of relief packages or stimulus measures for the steel and aluminum supply chain, the release added.
“This was already the worst freight market in 40 years for many trucking fleets, compounded by an out-of-control underground economy which is driving compliant companies out of the sector,” Laskowski said. “Economic relief packages for the steel and aluminum supply chain must include the compliant trucking industry; and, unlike the relief provided during Covid, it must not include non-compliant companies that take part in the underground economy.”
Canada’s monthly trade values with the United States in finished iron or steel products total about $11 billion per month with close to 75% of this trade moving by the trucking industry. Trucking also moves about 30% of the $600 million monthly trade in the aluminum and alloy sector, CTA said.
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