How Will the Impending US Tariffs Affect Canadian Transport?
Since prior to Trump even officially taking office, Trump has threatened Canada with tariffs on our goods. His plans are outlined in the “America First Trade Policy” (AFTP), though it is unclear as of now if the 25% tariff will actually be implemented on the date Trump previously stated, February 1st. With the US being one of our strongest trade partners, naturally the idea of tariffs on Canadian products is worrisome to many Canadian and American businesses alike.
On top of the tariffs, Trump also has a few other concerns about the transport industry that he wants addressed. The concerns mainly focus on the security of loads during cross-border transport. The Canadian Trucking Alliance has given input regarding what can be done to mitigate these concerns, including “[…] on-road inspection and enforcement activities to deal with immigration, labour and illegal cargo shipments before they ever reach the border.” They are urging the Canadian Federal Government as well as the Provincial Governments to take Trump’s threat of tariffs seriously.
The large majority of Canada-US trade products cross the border by truck. So naturally, a 25% tariff on all our products has raised the alarm for many within the industry and the government. This could mean a significant reduction in the amount of Canadian goods Americans are consuming due to the heightened cost. This, in turn, could lead to companies receiving less business and needing to cut costs in other ways. Overall, these tariffs will undoubtedly lead to a sizeable impact on economic conditions in both the US and Canada.
Concerns about the tariffs have been heightened since Trump has forced tariffs upon Colombia this week. However, Canada makes up a significantly larger portion of the US’ trade network, and these tariffs would have a much more significant impact on both countries. Canada did $414 billion worth of trade with the US last year alone, and so we can only hope that the White House considers the larger effects that these tariffs would have on both of our countries.