The North American trade relationship has grown exponentially for all three partners through a structured certainty based on NAFTA/CUSMA agreements, which have acted as a foundation for the business community in Canada, Mexico and the United States.
This framework has provided the stability and predictability which allows each nation to produce and ship products into other markets, benefitting and strengthening each other’s economies.
The tariff threats have brought unparalleled uncertainty, creating an untenable situation for Canadian trucking fleets and their US/Canadian customers. Based on information supplied by the Canadian Trucking Alliance’s national membership of over 5000 trucking companies, CTA reports the Canadian-US supply chain is now in panic mode.
Depending on the region, carriers who have been surveyed report over the last week say they are either rushing to move as much product stateside to avoid incoming tariffs, have seen demand completely drop off; or are seeing loads cancelled or put on hold in anticipation of the tariffs. Meanwhile, the tariffs announced by Canada in response to US tariffs, are also starting to create similar disruption for US exporters.
Unlike passenger car traffic, the number of commercial truck cross-border traffic hasn’t dropped. However, the so-called “panic moves” in advance of the tariffs are also creating storage issues for customers scrambling to store product they are not accustomed to warehousing.
In some cases, fleets cannot meet this increased demand, resulting in the supply chain having to rely more on trucking fleets who operate in the underground economy and who, by their unscrupulous practices, degrade highway safety and perhaps even pose security threats.
Most fleets throughout Canada are now putting off any capital acquisitions, like trucks and trailers, because of economic uncertainty and the costs associated with tariffs. Carriers are also approaching the management of labour costs in the same way, which has already led to layoffs, with more expected in the near future.
“The trucking supply chain, which is the backbone of Canada-US trade, is in chaos right now and faces very uncertain future,” said CTA president and CEO, Stephen Laskowski. “We continue to support our provincial and federal leaders who are working diligently to end this untenable situation, and restore order to the supply chain that has benefited US and Canadian citizens for generations.”