A surge in deliveries over the past two months has given way to a lull in shipments, following the implementation of U.S. President Donald Trump's 25 percent tariff on Canadian imports. The tariffs, which took effect on Tuesday, have left the trucking industry in a state of uncertainty. Shippers had raced to stock up on inventory before the deadline, resulting in an initial rush that has since tapered off. The Canadian Trucking Alliance reports that customers have begun cancelling orders, and many fleets surveyed in Ontario are experiencing recent or anticipated job cuts.
The trucking industry is a critical component of trade between Canada and the U.S., with approximately 70 percent of goods moving by truck. In 2023, shipments by road accounted for 52 percent of Canada's import value and 40 percent of its exports. This trade flow is predominantly to and from the U.S., highlighting the significant impact tariffs could have on cross-border commerce.
Eassons Transport Group experienced a "gangbusters" period for shipments of food items, such as fish, pies, and potatoes, in February. However, CEO Trevor Bent acknowledges that the tariffs will have repercussions. If business continues to decline, the company may be forced to make layoffs. Bent highlighted the scale of potential impacts by noting that "for every million dollars in topline revenue before fuel, it’s roughly four trucks and six employees to take care of that."
Stephen Laskowski, representing the Canadian Trucking Alliance, expressed concerns over the broader implications of the tariffs.
"Widespread tariffs on our customers’ freight to U.S. suppliers and consumers will have shocking effects on our membership and the overall supply chain," – Stephen Laskowski
The drawn-out trade war threatens to exacerbate the lull in shipments, affecting both the trucking industry and broader economic relations between Canada and the U.S. The immediate impact is evident as trucking companies grapple with reduced demand and potential job losses.
