As Premier Ford continues to respond to US tariffs, the Ontario Trucking Association is encouraging the Ontario government to implement quick relief measures for the Ontario trucking sector, which is expecting demand for its services to be severely impacted due to the imposition of 25 percent tariffs.
The Ontario trucking industry is the dominant mode moving Ontario’s export economy. These tariffs, depending on their duration and application, will lead to significant closures of trucking businesses and layoffs of employees.
Even before the tariffs were implemented this week, nearly one in three OTA member carriers indicated they had begun downsizing, OTA reported in a recent survey. About 62% of respondents said they would need to lay off employees in the event of a prolonged trade war with the US.
At the time, OTA carriers reported an 18-percent average uptick in shipment cancellations due to the threat of tariffs. That is expected to rise substantially now that the tariffs are in place.
In response to the tariffs and to provide immediate relief for the beleaguered trucking sector, OTA is asking Premier Ford to:
- Further cut the provincial diesel tax. The premier had already shown great leadership in cutting the tax by 5.3 cents per litre through to June of this year.
- Consideration should also go to providing tax relief to the fees/rebates that trucking companies pay, or have already paid, regarding registration/plate and permitting fees.
“Labour and fuel are the two leading costs for trucking companies. These measures would provide immediate relief for trucking companies of all sizes and independent owner-operators,” said OTA Chair Mark Bylsma.
The OTA is also encouraging the premier to immediately request that the procurement process for provincial contracts requiring truck transportation services, be reviewed and amended to ensure that trucking businesses that operate in the underground economy are not rewarded with government or related contracts.
Relatedly, the OTA chair cautioned all levels of government considering tariff relief programs not to repeat mistakes made during covid, when many illicit businesses received undue funding.
“Trucking companies who operate honestly and responsibly under the law expect that our elected officials will ensure that any relief programs afforded to our industry is not provided to those who undermine the industry by operating in the underground economy,” says Bylsma.
“Companies that evade taxes and violate labour and other laws should not receive any support that is subsidized by the taxpayer and compliant businesses that pay taxes.”
OTA, through its membership in the Canadian Trucking Alliance, has written the Council of the Federation (premiers/prime minister) regarding similar matters that were echoed in a recent CTA press release. Premier Ford is currently the Chair of the Council of the Federation.