Escalating trade tensions between the U.S. and Canada are sending shockwaves through the North American trucking sector, with new tariffs threatening supply chains and raising costs for businesses on both sides of the border. U.S. President Donald Trump’s latest executive order imposing additional duties on Canadian goods has intensified pressure on an industry already grappling with pandemic-era disruptions.
Industry analysts warn that cross-border freight volumes could decline by up to 15% this quarter as manufacturers reassess logistics strategies. The tariffs particularly impact automotive parts, agricultural equipment, and construction materials – sectors heavily reliant on just-in-time delivery systems. A spokesperson for the Ontario Trucking Association noted that "smaller carriers may struggle to absorb these new costs," potentially leading to service reductions.
While diplomatic talks continue, the economic ripple effects are becoming visible. Customs processing times at major border crossings like Detroit-Windsor and Buffalo-Niagara have increased by 20-30% since the tariffs took effect. Some logistics firms are rerouting shipments through third countries or exploring rail alternatives, though capacity constraints limit these options.
The developments come as North American businesses work to rebuild resilient supply chains following recent global disruptions. Market watchers suggest the tariffs could accelerate nearshoring trends in manufacturing, potentially benefiting Mexico’s industrial sector while complicating U.S.-Canada economic integration.
