MONTREAL – Truckers say the across-the-board 25 per cent tariffs threatened by U.S. President Donald Trump would wreak havoc on their industry as trade between Canada and the United States would take a hit.
“If these tariffs came in at those levels for a prolonged period, this could be the final nail in the coffin for many trucking fleets,” said Stephen Laskowski, president of the Canadian Trucking Alliance.
The duties on Canadian imports to the U.S. — now delayed by at least 30 days until early March — would mark the biggest trade shock north of the border in nearly a century, according to RBC Economics. The last-minute postponement, announced by Prime Minister Justin Trudeau late Monday afternoon, came after Trump said repeatedly the duties were slated to kick in Tuesday.
In response to the initial threat, Ottawa had vowed equal tariffs on $155 billion worth of American-made goods, ranging from beer and cheese to desk chairs, drones and dishwashers.
Many of the trucking alliance’s 5,000 member companies are already struggling because of weaker consumer demand.
“It’s hypercompetitive,” Laskowski said of the ailing sector. “When the economy catches a cold, the trucking industry catches pneumonia.”
Some 120,000 Canadian truckers carry cross-border shipments, he said. Hauls to the U.S. make up about two-thirds of all Canadian truckloads, according to transportation tech firm Arrive Logistics.
In 2023, truckers from both countries drove US$435.7 billion in freight across the border, according to the U.S. Department of Transportation, with consumer products, motor vehicles and parts, and electronics among the biggest items. Truck cargo comprises 60 per cent of transborder trade between Canada and the U.S.
Particularly vulnerable is the manufacturing sector, which includes tens of billions of dollars in auto parts and vehicles borne by truck to the U.S. from Canada.
The likely decline in total transborder trade would see more drivers turning to the domestic trucking market, said Joseph Khoueiry, whose company Fabreville Inc. operates five tractor trailers between Toronto and Montreal. As the number of truckers vying for shipping contracts rises, the prices they charge would fall, denting the bottom line.
“They’re going to compete with us. It’s going to affect the rate, it’s going to eat our margins,” he said.
Khoueiry added that replacement parts for his fleet would also likely see price hikes from the 25 per cent tariff slapped on auto imports from the U.S. — paid for with an even weaker Canadian dollar. Trading for around 68 cents US as of Monday, the loonie has sunk to its lowest level since 2003, with currency experts predicting further declines are likely if markets forecast the tariffs would be here for the long haul.
The trucking alliance has called on premiers to open up interprovincial trade.
Laskowski also said the federal government should reconvene Parliament to deal with the crisis.
“Our leaders need to get together and develop solutions,” he said.
This report by The Canadian Press was first published Feb. 4, 2025.
