Trucking organizations on both sides of the U.S.-Canada border are saying President Donal Trump’s tariffs that went into effect today will damage trucking companies in both countries.
Trump imposed the 25% tariffs on goods imported from Canada and Mexico after delaying them last month. Trump also increased tariffs on goods coming from China.
Trump has insisted the tariffs are in response to Canada and Mexico not doing enough to stem the flow of illegal immigration and fentanyl across their borders.
All three companies enacted tariffs on U.S. goods they import.
In a statement released today, American Trucking Associations President and CEO Chris Spear said Trump “has rightfully placed an emphasis on tackling” the issues of illegal immigration and fentanyl, but cautioned the imposition of tariffs by all four counties will have significant economic impacts on consumers and the trucking industry.
Stephen Laskowski, CEO and president, Canadian Trucking Alliance, cautioned Trump’s moves could lead to job losses in that country’s trucking industry and could even force some fleets to close
“As we work to make our communities stronger and safer, we must also avoid unintended consequences that could exacerbate another one of Americans’ top concerns: the high prices for goods and groceries,” said Spear. “With the success of USMCA and the growing trend of nearshoring, the North American supply chain has become highly integrated and supports millions of jobs. Imposing border taxes on our two largest and most important trading partners will undo this progress and raise costs for consumers.
“The 100,000 full-time hardworking truckers hauling 85% of the surface trade in goods with Mexico and 67% of the goods traded with Canada will bear a direct and disproportionate impact. Not only will tariffs reduce cross-border freight, but they will also increase operational costs.”
Spear said the price tag of a new truck could rise by up to $35,000, amounting to a $2 billion annual tax and putting new equipment out of reach for small carriers.
“The longer tariffs last, the greater the pain for truckers as well as the families and businesses we serve. To prevent unnecessary economic pain, the trucking industry urges all parties to come to the table once again to swiftly reach a new agreement.”
Laskowski said some Canadian trucking companies have already started laying off employees. As many as one in three fleets in Ontario have scaled back their payrolls.
He called for the government to take measurers to provide immediate financial relief for trucking companies. Among those measures are the immediate removal of the carbon tax, especially on the eve of another slated increase for April 1. Laskowksi also called for the government to remove or reduce the federal excise tax on diesel.
The National Tank Truck Carriers (NTTC) President and CEO Ryan Streblow today released the following statement about the tariffs on goods imported from Canada and Mexico:
“NTTC and its tank truck carrier members believe that healthy trade relationships between the United States, Canada, and Mexico have helped create the prosperous quality of life enjoyed by North America that is the world standard.
“The association supports the Trump administration’s priority to enhance the safety and security of the United States, especially with the goal of enhancing border security to counter the flows of smuggling of all kinds.
“The American tank truck ecosystem relies on a healthy and stable trade environment to maximize efficiency that not only benefits trucking companies, but also the American consumer at large.
“The National Tank Truck Carriers association is hopeful the Trump administration, in good-faith negotiations with Canada and Mexico, can reach an agreement to avoid potentially damaging economic consequences for all of North America.”
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