“Widespread tariffs on our customers’ freight to US suppliers and consumers will have shocking effects on our membership and the overall supply chain. 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,” said Stephen Laskowski, CEO and president, Canadian Trucking Alliance.

Trucking moves most (70 percent by value) of Canada-US trade. In March 2024, total value of Canada-US trade moved by all four transport modes totalled $77 billion.

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.

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. 

CTA is calling on the Government of Canada to immediately implement achievable temporary relief for the trucking industry:  

• Announce the immediate removal of the carbon tax, especially on the eve of another slated increase for April 1.
• Along with suspending the carbon tax, CTA is calling on the federal government to remove or reduce the federal excise tax on diesel – a tax that serves no useful policy purpose.
• The Council of Ministers, which is made up of the premiers and prime minister, develop a trucking tax relief program related to such measures as on-road provincial diesel fuel, provincial taxes/fees associated with the trucking industry, and government shipping procurement practices. 
• Government of Canada increase on-road meal allowance deductibility to 100 percent for truck drivers facing reduced demands for their service.
• Ensure that any relief packages or program, like the work sharing program, will only be available to individuals on payroll or independent contractors who have voluntarily opted into EI. These programs cannot be exploited by the underground economy and carriers who violate labour and tax laws, like the COVID wage subsidy programs were. 
  
  

The removal of the carbon tax, specifically, would save a trucking company between $15,000 and $20,000 per truck per year. The carbon tax is hurting fleets of all sizes. A small business owner with five trucks is seeing between $75,000 and $100,000 in extra costs associated with the carbon tax. These situations are made worse by the current market conditions where an increasing number of carriers are relying on the spot market for freight.

“We need an immediately short-term relief package that starts with such tax measures, but we also need long-term planning to improve our productivity and efficiency,” says Laskowski. “The trucking interprovincial trade barrier pilot is an excellent start, but with the imposition of tariffs, we need to expediate all solutions to improving the productivity and competitiveness of our sector right now.”