MONTREAL — Trucking companies have begun to halt shipments, mull layoffs and scramble for new routes as tariffs wreak havoc on cross-border trade.
The lead-up to U.S. President Donald Trump’s sweeping 25 per cent tariff on Canadian imports as well as retaliatory duties from Canada that took effect Tuesday prompted a surge in deliveries over the past two months as shippers raced to stock up on inventory before the deadline.
That boost has brought on a subsequent lull that a drawn-out trade war would exacerbate, said Eassons Transport Group CEO Trevor Bent.
“February was definitely gangbusters,” he said of his company’s shipments of food ranging from fish to pies and potatoes.
“There’s certainly going to be an impact,” Bent said, referring to the tariffs. “There’s folks cancelling loads to the U.S. right now.”
Bent said the Nova Scotia-based outfit, which draws nearly 20 per cent of its sales from U.S. distributors and grocers, will be forced to make layoffs if business continues to stall.
“For every million dollars in topline revenue before fuel, it’s roughly four trucks and six employees to take care of that,” he said, referring to prospective job cuts at the 300-tractor fleet.
The Canadian Trucking Alliance said this week customers have been cancelling orders, and many fleets surveyed in Ontario by the industry group reported recent or imminent job cuts.
“Widespread tariffs on our customers’ freight to U.S. suppliers and consumers will have shocking effects on our membership and the overall supply chain,” said president Stephen Laskowski in a release.
He has called for a tax relief program for the sector, the immediate removal of carbon pricing and a reduction in the federal tax on diesel.
Shipments by road accounted for 52 per cent of Canada’s import value in 2023, and 40 per cent of its exports, with that trade flow almost entirely to and from the U.S., according to Statistics Canada. Roughly 70 per cent of trade in goods between Canada and the U.S. moves by truck.