Canadian Trucking Industry Faces Uncertainty Amid Trade Tensions and Tariffs
The Canadian trucking industry is currently navigating a challenging and uncertain landscape. According to Stephen Laskowski, President and CEO of the Canadian Trucking Alliance, nearly 80% of trade between Canada and the United States relies on Canadian trucking companies. He pointed out that recent tariffs have significantly destabilized the sector, intensifying existing economic issues such as a growing underground economy that undermines the global competitiveness of Canadian carriers. Additionally, many companies have hurried to move goods across the border quickly in an effort to avoid new tariffs, further straining the industry.
Laskowski warned that demand from many clients has sharply declined, which could lead to trucks being sidelined for an indefinite period. As cross-border transportation capacity shrinks, there’s a real risk that freight will flood into the Canadian domestic market, creating unsustainable conditions and potentially triggering a severe downturn in Canada-U.S. trade flows.
Despite these concerns, border crossing volumes have remained relatively stable — in fact, there has been an increase at the Blue Water Bridge, possibly due to rising tolls at the Ambassador Bridge. However, industry stakeholders remain deeply worried. Many are actively monitoring their workforce levels, and a significant number fear that an extended trade dispute could seriously threaten their operations. Only a small minority see shifting to domestic freight as a viable solution.
Importantly, demand for northbound freight from the U.S. has stayed steady, with no notable decline.
In response to these mounting challenges, the Canadian Trucking Alliance has called for several policy measures, including removing internal trade barriers, reforming tax and labor laws, and tackling the underground economy that continues to weaken industry competitiveness.
