The Canadian Trucking Alliance said the U.S. tariffs currently in place on most goods coming from Canada will “devastate” the country’s trucking industry.
On Tuesday, March 4, CTA issued a statement regarding the tariffs being imposed by U.S. President Donald Trump – calling upon the Canadian government to act to offset costs for an industry facing what it says is “the worst freight economy in 40 years.”
“Widespread tariffs on our customers’ freight to US suppliers and consumers will have shocking effects on our membership and the overall supply chain,” CTA president Stephen Laskowski said in a statement. “The longer these tariffs are applied, the more strain there will be on carriers, which will lead to jobs losses and permanent closures of fleets.”
According to the Canadian Trucking Alliance, trucking companies north of the border are already starting to see the impacts of the tariffs. It cited recent surveys in which carriers reported having customers – between 20% and 80% depending on the company – canceling orders in the weeks leading up the tariffs going into effect.
CTA said that some Canadian carriers had already started layoffs in anticipation of the financial impact of the tariffs, with a survey of Ontario carriers showing one in three fleets had reported layoffs – a number CTA said is “expected to grow in the aftermath of the tariffs.”
In response to the U.S. tariffs, CTA called upon the Canadian government to “immediately implement achievable temporary relief for the trucking industry.”
Among the suggestions from CTA for the federal government is the removal of the country’s carbon tax on carriers – a tax that is slated to increase at the beginning of April. CTA said that trucking companies would save between $15,000 to $20,000 per truck if the carbon tax were removed.
Additionally, the Canadian Trucking Alliance is asking the federal government to remove or reduce the federal excise tax on diesel. According to CTA, the tax – which currently sits at 4 cents per liter – has “no useful policy purpose.”
“We need an (immediate) short-term relief package that starts with such tax measures, but we also need long-term planning to improve our productivity and efficiency,” Laskowski said. “The trucking interprovincial trade barrier pilot is an excellent start, but with the imposition of tariffs, we need to expediate all solutions to improving the productivity and competitiveness of our sector right now.”
Full impact of tariffs unknown, for now
In February, the Owner-Operator Independent Drivers Association said that while it was too soon to determine the full impact the tariffs would have, the increased charges could make the road to recovery from a prolonged freight recession even longer.
“Tariffs on America’s trade partners have the potential to inhibit the recovery from a freight recession that has been acutely felt by America’s small-business truckers, but it is too early to make predictions on specific downstream economic effects,” the Association said. “OOIDA’s trade experts will continue to monitor the effects of these policies as trade negotiations develop and will keep our association members informed.”
According to a statement from the White House, the 25% tariffs on goods imported from Canada and Mexico – along with a 10% tariff imposed on goods from China – are intended to “combat the extraordinary threat to U.S. national security, including our public health posed by unchecked drug trafficking.”
On Monday, March 3, Canadian Prime Minister Justin Trudeau called the tariffs “unjustified,” pointing to the fact that less than 1% of the fentanyl intercepted in the U.S. crosses the Canadian border.
“Canada will not let this unjustified decision go unanswered,” Trudeau said. “Should American tariffs come into effect tonight, Canada will, effective 12:01 a.m. EST tomorrow, respond with 25% tariffs against $155 billion of American goods – starting with tariffs on $30 billion worth of goods immediately and tariffs on the remaining $125 billion on American products in 21 days’ time.”
Trudeau said the retaliatory tariffs would remain in place until the U.S. withdrew the imposed levies, adding that the federal government was engaged in “active and ongoing discussions with provinces and territories to pursue several non-tariff measures” should the tariffs remain in place.
“Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas and cars, and potentially lose thousands of jobs,” the Canadian Prime Minister said. “Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term.” LL
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