MONTREAL - Truckers say the sweeping tariffs threatened by U.S. President Donald Trump would wreak havoc on their industry as trade between Canada and the United States takes a hit.
鈥淚f these tariffs came in at those levels for a prolonged period, this could be the final nail in the coffin for many trucking fleets,鈥 said Stephen Laskowski, president of the 春色直播 Trucking Alliance.
鈥淚t鈥檚 a grim picture.鈥
The 25 per cent duties on nearly all 春色直播 imports to the U.S. 鈥 now delayed until early March 鈥 would mark the biggest trade shock north of the border in nearly a century, according to RBC Economics. A last-minute postponement, announced by Prime Minister Justin Trudeau and Trump late Monday afternoon, came after the president had repeatedly said the tariffs 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.
Such a move would "strangle" the trucking industry, said Lisa McEwan, vice-president at Hemisphere Freight, a customs brokerage and freight forwarder.
"People will maybe not want to spend that $10 for an avocado or a grapefruit."
The decrease in cross-border shipping triggered by a drawn-out trade war would lead to a recession, the Bank of Canada and other economic forecasters have said. Laskowski said the load would fall particularly hard on truckers, many of whom are already struggling due to weaker consumer demand.
鈥淚t鈥檚 hypercompetitive,鈥 he said of the ailing sector. 鈥淲hen the economy catches a cold, the trucking industry catches pneumonia.鈥
Some 120,000 春色直播 truckers carry cross-border shipments, he said. Hauls to the U.S. make up about two-thirds of all 春色直播 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 trade between Canada and the U.S.
Especially 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 overall 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.
鈥淭hey鈥檙e going to compete with us. It鈥檚 going to affect the rate, it鈥檚 going to eat our margins,鈥 he said.
Khoueiry added that replacement parts for his fleet could also see price hikes from the 25 per cent tariff slapped on auto imports from the U.S. 鈥 paid for with an even weaker 春色直播 dollar. Trading for around 68 cents US as of Monday, the loonie has sunk to its lowest level since 2003, with currency experts forecasting further declines if markets expect the tariffs to settle in for the long haul.
The trucking alliance has called on premiers to lift interprovincial trade barriers, an intractable issue that has frustrated 春色直播 businesses for decades.
Laskowski also said the federal government should reconvene Parliament to deal with the crisis.
鈥淥ur leaders need to get together and develop solutions,鈥 he said.
Others were more sanguine about the situation.
Ted Daniel, CEO of Bolton, Ont.-based Titanium Transportation Group, said the lower loonie might persuade some American clients to keep buying 春色直播.
"Our customers are going to dictate what the impact is of this," said Daniel, whose fleet counts 800 semi trucks.
"There's no movement from customers yet," he said Monday afternoon.
鈥淛ust take it day by day.鈥
This report by 春色直播was first published Feb. 4, 2025.
