Seven out of 10 Canadian trucking companies have seen loads to the U.S. paused or canceled outright in the wake of recently imposed tariffs, according to a survey by the Canadian Trucking Alliance.
In addition, executives at 60% of the CTA’s carrier members said a long trade war would pose a serious risk to operations, and 8% reported laying off workers.
Key exports that have been delayed or canceled include farm equipment, fertilizer, lumber, tires, food and oil products, the organization reported.
“Many report tariffs are essentially bringing trade to a halt, as customers and suppliers struggle to figure out the actual declared product value, who pays for these additional costs, and customers [adjust] to just-in-time/emergency delivery options to manage costs associated with tariffs,” the CTA stated in a news release.
However, 70% of carriers said Canada’s retaliatory tariffs had had no impact on imports of U.S. goods.
The U.S. imposed 25% tariffs on Canadian imports that are not compliant with the United States-Mexico-Canada Agreement, as well as a 10% tariff on energy imports. Canada has imposed 25% tariffs on some $30 billion worth of U.S. goods.
“About 80 percent of Canada-US trade moves by Canadian trucks,” CTA President and CEO Stephen Laskowski said in the release. “We are now entering a business cycle with a tremendous amount of uncertainty brought on by tariffs. This is further compounding poor economic conditions prior to tariffs being implemented, an underground economy that is wiping out competitiveness in the Canadian trucking industry and an artificial rush to get product over the border to avoid new tariffs.
“Our members’ customers are facing a precipitous drop in demand for their goods which could leave trucks parked on the sidelines indefinitely. More bad news could be the breaking point for many in the industry.”
Laskowski added: “Once capacity is drained from the cross-border sector, it will be dumped into the Canadian market, creating unsustainable business conditions and a nuclear winter for Canada-U.S. freight movement. The Canadian economy, and the trucking industry that fuels it, are entering a dangerous point in history, leading to a game of attrition where companies compete to see who can hold on the longest before declaring insolvency.”
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EU delays US tariffs for 90 days following Trump’s pause
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