The Canadian Trucking Alliance (CTA) is warning of growing uncertainty in the Canada-U.S. supply chain as fleets scramble to adjust to looming tariff threats.
CTA, which represents more than 5,000 trucking companies nationwide, says the Canadian-U.S. supply chain is now in “panic mode.” Depending on the region, carriers surveyed over the last week report that they are either rushing to move as much product stateside as possible to avoid incoming tariffs, have seen demand completely drop off, or are seeing loads canceled or put on hold in anticipation of the tariffs.
At the same time, Canada’s retaliatory tariffs are causing similar disruptions for U.S. exporters.
Unlike passenger vehicle traffic, cross-border truck volumes have not declined, CTA says. However, the surge in last-minute shipments ahead of the tariffs creates significant storage issues for customers unaccustomed to warehousing large inventories. Some fleets cannot meet this increased demand, forcing supply chains to rely on trucking companies that operate in the underground economy, raising concerns about highway safety and security risks, the alliance writes.
Uncertainty also affects long-term business decisions as most fleets across Canada have put off capital investments, including the purchase of trucks and trailers, due to economic instability and the financial impact of tariffs. Carriers are also approaching the management of labor costs similarly, which has already led to layoffs, with more expected in the near future.
“The trucking supply chain, which is the backbone of Canada-US trade, is in chaos right now and faces a very uncertain future,” said CTA president and chief executive officer Stephen Laskowski. “We continue to support our provincial and federal leaders who are working diligently to end this untenable situation, and restore order to the supply chain that has benefited US and Canadian citizens for generations.”
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