Canada's trucking sector is bracing for significant challenges as U.S. tariffs escalate trade tensions, threatening cross-border commerce and putting jobs at risk.
Against a backdrop of sluggish traffic and low rates, OnFreight Logistics, a Canadian trucking company based near the U.S.-Canada border, is now facing a new headwind due to the trade war.
In early March, U.S. President Donald Trump extended the exemption on 25 percent tariffs for certain Canadian goods, pushing the deadline to April 2.
The company operates at North America's busiest border crossing, where Windsor in Canada and Detroit in the U.S. are connected by the Ambassador Bridge over the Detroit River. On average, more than 7,000 trucks cross this bridge daily.
However, the tariff dispute between the U.S. and Canada is already taking a toll, particularly on the region's large auto industry. Trump's proposed tariffs on goods from Mexico and Canada will impact automotive parts suppliers more than automakers.
"There is so much integration. Many parts go back across the border, three, four, five, up to six or seven times. 45 to 50 percent of our business is auto related. We certainly understand the situation and are doing everything we can to obviously minimize costs and do the right thing and getting our business ready to weather the storm," said Steve Ondejko, president of OnFreight Logistics.
Now, the company's employees fear that further tariffs will cause a major decrease in the flow of goods, which could result in job losses.
"It's a lot concerning, because if the industry is going to shut down, of course, we will not have anything to transport. As drivers, how we're going to make our living? It's not encouraging at the moment, and everybody is like heartbroken and really impacted by this, because if we wouldn't have any jobs, we have no idea what the future holds for us," said Qasim Khurshid, a truck driver at the company.
The Canadian trucking industry is a big business. Trucks carry some 70 percent of all trade between the U.S. and Canada. The industry alone directly employs more than 300,000 drivers.
"Uncertainty, that's a word nobody wants to hear. When you're unsure of what's going to happen in the future, from day to day, week to week, it stresses people out. We don't need that. We have truck drivers going across the road, wondering if they're going to work the next day or not," said Jim Pereira, manager of asset and fleet safety compliance at the company.
If the tariffs stay in place long-term, the impacts on trucking along with many other industries, could be severe.
For now, companies like this one, are still attempting to move forward, but the road ahead is unclear.
Canada's trucking industry faces fresh hurdles amid U.S. tariff dispute
