In the wake of US tariffs announced by President Donald Trump yesterday, the Canadian Trucking Alliance is imploring Ottawa, the premiers, and officials in Washington to immediately come to the table and end this unwarranted trade conflict.<\/p>\n\n\n\n
Donald Trump made tariffs a campaign promise and last night followed through by implementing tariffs of 25% on Canadian exports (10% on oil and gas). The president and senior administration staff have repeatedly cited the sourcing and distribution of fentanyl as Trump\u2019s key reason for implementing the tariffs on Canada and Mexico.<\/p>\n\n\n\n
An executive order published today, titled Imposing Duties to Address the flow of Illicit Drugs Across the Northern Border, appears to recognize that the smuggling of fentanyl and \u201cunvetted illegal migration\u201d mainly originates in Mexico, but states the \u201cnorthern border is not exempt from these issues\u201d and nonetheless penalizes Canada equally.<\/p>\n\n\n\n
\u201cThis has gotten out of hand,\u201d says CTA president Stephen Laskowski. \u201cThe reality is the tariffs are unreasonable are out of proportion to the problem. The tariffs are like taking a sledgehammer to crack a nut.\u201d<\/p>\n\n\n\n
\u201cWe support Team Canada and our provincial and territorial governments, along with business, labour, and other leaders that have been working vigorously on a robust response. But the reality is the Americans clearly believe we are not doing enough to address their concerns. We therefore need Ottawa and Washington to come to together to find common solutions to this specific challenge rather than bringing economic chaos to both countries.\u201d<\/p>\n\n\n\n
Accordingly, CTA is calling on Prime Minister Justin Trudeau to immediately end the prorogation of Parliament.<\/p>\n\n\n\n
\u201cParliament is where the business of government functions and so it\u2019s imperative it is restarted as we face this crisis,\u201d says Laskowski. \u201cAs a nation, we must support Team Canada to withstand these unfair tariffs, while also sending a strong message to the Americans that we are ready at the highest levels to work together.\u201d<\/p>\n\n\n\n
American business partners agree these tariffs will devastate the economies of both countries. The U.S. Chamber of Commerce stated today<\/a> that \u201ctariffs are not the answer\u201d, and while focusing on the border and \u201cthe scourge of fentanyl\u201d in the US is important, the \u201cimposition of tariffs \u2026 won\u2019t solve these problems,\u00a0and will\u00a0only\u00a0raise prices for American families and upend supply chains.\u201d<\/p>\n\n\n\n The Canadian trucking industry is already reeling from the tariff announcement. It has sent shockwaves throughout the supply chain and there are reports of operations and markets being impacted overnight.<\/p>\n\n\n\n The majority of all Canada-US trade moves by truck. Even amid one of the worst freight recessions in half a century, the Canadian trucking industry still moved more than $350 billion worth of imports into the U.S. in 2024 \u2013 including tens of billions in motor vehicles and parts; farm fishing and food products; chemicals, forestry and petroleum and energy.<\/p>\n\n\n\n The imposition of 25% tariffs will cripple a trucking industry beleaguered by a depressed market, skyrocketing costs and unfair competition by\u00a0unscrupulous carriers<\/a> which operate unabated in the underground economy. Many of these same gross violators are also exacerbating the cross-border security threat this U.S. administration is increasingly concerned over. With freight volumes already bordering at unstainable levels, long-term tariffs will undoubtedly lead to major downsizing and closures for trucking companies and countless other Canadian businesses that rely on the supply chain.<\/p>\n\n\n\n \u201cThe trucking industry is experiencing cost inflation at an unsustainable rate, while revenue quality continues to decline. Carriers are shrinking fleets and workforces to survive, but customer expectations and operational demands continue to rise. An already oversupplied market cannot afford further disruptions, and tariff-related policy changes will have devastating effects on our industry,\u201d says Greg Arndt, CTA chair. \u201cTariffs could likely be the nail in the coffin for many fleets across Canada.\u201d<\/p>\n\n\n\n