Trump tariffs could have 'shocking effects,' Canadian truckers warn
Canadian truckers are warning that U.S. President Donald Trump's newly implemented tariffs could deal a devastating blow to an industry that has already faced headwinds in recent years.
"Widespread tariffs on our customers' freight to US suppliers and consumers will have shocking effects on our membership and the overall supply chain," Stephen Laskowski, CEO and president of the Canadian Trucking Alliance, said in a statement Tuesday.
"The longer these tariffs are applied, the more strain there will be on carriers, which will lead to jobs losses and permanent closures of fleets," he said.
The warnings come as union leaders and government officials say that the 25 per cent tariffs on all Canadian goods, which the Trump administration implemented at midnight on Tuesday, could destroy Windsor-Essex's economy, which is highly reliant on cross-border trade.
Laskowski said that heading into 2025, the freight market was the worst it had been in 40 years.
"We are expecting more layoffs the longer these tariffs are applied," he said.
Steve Ondejko Sr., president and owner of On Freight Logistics in Tecumseh, said the tariffs haven't directly affected his business yet, and that "there was a concerted effort" recently to get products across the border before the tariffs kicked in.
Still, "everybody's concerned" about the future, he said, and layoffs are not out of the question.
"There is a lot of unrest in this industry that is creating hardships for a lot [of carriers]," Ondejko said. "There will be many that will probably not survive an extended tariff issue."
The CTA said some companies had already started to lay off employees in anticipation of the tariffs.
"In recent fleet surveys conducted by various trucking associations, carriers across Canada report that customers already began cancelling orders in the weeks leading up to the tariffs, varying between 20 and 80 percent at some businesses in certain provinces," the CTA said.
"Consequently, carriers have already begun laying off employees. As many as one in three fleets surveyed in Ontario, for example, indicated layoffs – a number which is expected to grow in the aftermath of the tariffs."
Ondejko said On Freights' demand has been "fairly decent," but that as costs increase as a result of the tariffs, "consumers are going to buy less, which means there's less to transport, which means less business for people like ourselves and our industry."
Gurjit Singh, a truck driver for On Freight, said the tariffs are bad for consumers on both sides of the border, and worries about the effect on his family.
"If we're not getting hours, how [can I] put food on my table, right?" he said.
Courtney Michinski, a customer service representative for the cross-border trucking company, said Tuesday that it was taking "a little bit longer" for their drivers to cross into the U.S. because they were being pulled into secondary inspection.
"We're just dealing with it as we can," she said.
How the trade war will hit your wallet (and what you can do)
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Both Ondejko and the CTA called on the federal government to repeal the carbon tax to help trucking companies save money.
"The removal of the carbon tax, specifically, would save a trucking company between $15,000 and $20,000 per truck per year," the CTA said.
Ondejko said he doesn't necessarily believe that Canadian governments should impose retaliatory measures against the U.S., calling it a "tit for tat."
"I believe Canada needs to seriously get negotiations started, and those negotiations need to be strong and, and present Canada's case for our country and for our industry and for our locale and our province," he said.
"Hopefully all parties negotiate in good faith, and we work out an agreement that works for all and we can continue and carry on."
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