New Tariffs Spark Backlash From Canada
The Canadian government has made its disapproval clear regarding the new tariffs the U.S. has imposed upon it.
Early in February, President Trump announced his plan to impose a 25% tariff on all goods entering the country from Canada and Mexico. The order was delayed for a month but went into effect yesterday (March 4th).
The President has stated that his reasoning for this is to curb the flow of fentanyl coming into the States.
U.S. and Canadian Trucking Associations Warn Against New Tariffs
In February, both the U.S. and Canadian trucking associations made statements regarding this news.
American Trucking Association President and CEO – Chris Spear
“As the trucking industry recovers from a years-long freight recession marked by low freight volumes, depressed rates, and rising operational costs, we have concerns that tariffs could decrease freight volumes and increase costs for motor carriers at a time when the industry is just beginning to recover. A 25% tariff levied on Mexico could see the price of a new tractor increase by as much as $35,000. That is cost-prohibitive for many small carriers, and for larger fleets, it would add tens of millions of dollars in annual operating costs.”
“Trucks move 85% of goods that cross our southern border and 67% of goods that cross our northern border, supporting hundreds of thousands of trucking jobs in the U.S. The trucking industry understands the crises motivating these tariff proposals, which is why we have been a leader in efforts to fight drug and human trafficking. We firmly support policies that will secure our borders and protect legitimate trade, but we also recognize the unintended consequences that substantial tariffs could have over the long term, including higher consumer costs on the wide range of goods that cross our borders by truck, including food, automobiles, televisions, computers, furniture, and other key manufacturing inputs.”
Canadian Transportation Agency
“This has gotten out of hand. The reality is the tariffs are unreasonable and out of proportion to the problem. The tariffs are like taking a sledgehammer to crack a nut. We support Team Canada and our provincial and territorial governments, along with business, labor, and other leaders that have been working vigorously on a robust response. However, the reality is that Americans believe we are not doing enough to address their concerns. We therefore need Ottawa and Washington to come together to find common solutions to this specific challenge rather than bringing economic chaos to both countries.” – CTA President, Stephen Laskowski
“The trucking industry is experiencing cost inflation at an unsustainable rate, while revenue quality continues to decline. Carriers are shrinking fleets and workforces to survive, but customer expectations and operational demands continue to rise. An already oversupplied market cannot afford further disruptions, and tariff-related policy changes will have devastating effects on our industry. Tariffs could likely be the nail in the coffin for many fleets across Canada.” – CTA Chair, Greg Arndt
Response From The Canadian Government on New Tariffs
The Department of Finance Canada issued a statement yesterday as the new tariffs went into effect.
“Canada will not stand by as the United States imposed unwarranted and unreasonable tariffs on Canadian goods.”
Below are two quotes from Canadian officials regarding this matter.
“Canada is being needlessly and unfairly targeted by these tariffs – and the U.S.’s decision leaves us with no choice but to respond to protect Canadian interests, workers and businesses. Working with provincial, territorial, and industry partners, our singular focus is to get these tariffs removed as quickly as possible.” –The Honourable Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs
“Today, the United States has chosen to pursue a harmful course of action that threatens the prosperity of both our nations. Canada stands firm in defending our economy, workers, and businesses against these unjustified tariffs. We are announcing a robust response of $155 billion and remain prepared to take additional measures as needed.” – The Honourable Mélanie Joly, Minister of Foreign Affairs
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