Canadian Carriers Cut Head Count Due to Tariff War
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Eight percent of Canadian carriers have already cut head count as a result of the introduction of tariffs by the Trump administration in recent weeks.
However, as much as 70% of the Canadian trucking fleet could see layoffs in the coming months due to the disruption and discord sown by the trade measures, according to a survey of executives conducted by the .
In addition, some 60% of carrier executives say a prolonged trade war could put their businesses , the trade association said.
Almost 70% of respondents told CTA that loads to the U.S. have been canceled or paused, including shipments of commodities such as lumber, refined products and fertilizer plus farming equipment, tires and general food products.
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About 80% of Canada-U.S. trade moves by Canadian trucks, said CTA CEO Stephen Laskowski. 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.
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.
President Donald Trump unveiled plans Feb. 10 to raise tariffs on U.S. steel and aluminum imports to 25% from March 12. Imports from some countries already had a 10% tariff from 2018 actions during his first term. Exemptions from the previous tariffs were revoked, including for allies.
Canadian Trucking Alliance reports freight drop due to U.S. tariffs CTA (@CanTruck)
Around half of all U.S. aluminum demand is met from imports, with more than 40% of U.S. imports of aluminum from Canada.
The U.S. is the worlds largest steel importer, with about a quarter of all steel used in the country being imported. Canada is the largest single source of those imports, according to the U.S. International Trade Administration.
Matching 25% tariffs on Canada and Mexico were imposed March 4. Two days later, the White House rowed back that plan, rescinding tariffs for Canadian and Mexican products that complied with the .
70% of Carriers See Freight Drop; Further Tariffs Could Be Breaking Point: CTA Survey CTA (@CanTruck)
At the end of the month, the Trump administration slapped 10% or more tariffs on all imports outside the USMCA.
The tariffs announced [March 26] have potential to depress freight volumes and increase equipment costs for our industry. We continue to express these concerns directly to administration officials, American Trucking Associations President Chris Spear said after the announcement.
Brian Antonellis of Fleet Advantage and TMC General Chairman Radu Mihai discuss the need for targeted training programs for heavy-duty technicians that build a capable, future-ready workforce. Tune in above or by going to .泭泭
Canada initially introduced nearly $30 billion of reciprocal tariffs, including on American aluminum and steel. On April 3, the government of Prime Minister Mark Carney added further countermeasures on finished vehicles and components in vehicles.
The global economy is fundamentally different today than yesterday. We must respond with purpose and force and take every step to protect Canadian workers and businesses against the unjust tariffs imposed by the United States, including on automobiles. We will never cease to defend the interests of Canadians, safeguard our workers and businesses, and continue our pursuit to build the strongest economy in the G7, said Carney.
However, the countertariffs are not impacting Canadian imports from the U.S., as 70% of carriers north of the 49th Parallel report no impact on demand for northbound freight, according to the CTA study.
The busiest U.S.-Canada border crossing for freight is the Ambassador Bridge, connecting Detroit and Windsor, Ontario, followed by Port Huron, Mich., to Point Edward, Ontario, and then Buffalo-Niagara Falls in New York.
Prospects for the global economy are dimming as a result of the trade war unleashed by the Trump administration. The World Trade Organization on April 16 cut its world merchandise trade expectations compared with the start of 2025 by 3 percentage points to a 0.2% decline. U.S. exports are forecast to drop 12.6%.
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