
U.S.-Canada Trade Tensions Escalate as Trump's 25% Tariff Disrupts Cross-Border Commerce
Tariffs shake trade's foundation
Jobs hang in balance
Cross-border trade between the United States and Canada faces significant disruption as uncertainty surrounds President Donald Trump's implementation of a 25% tariff on Canadian imports, with trucking companies reporting immediate impacts on operations.
According to Statistics Canada data cited in the Winnipeg Sun [1], exports to the United States reached a record $58.2 billion in January 2025, rising 7.5% month-over-month as companies rushed shipments ahead of anticipated tariffs.
The current situation remains volatile after Trump announced on March 6 another pause on some tariffs until April 2, marking the second such delay after previously pushing back the February 4 implementation date. However, the broader 25% tariff threat continues to impact trade planning.
'There's certainly going to be an impact,' said Trevor Bent, CEO of Eassons Transport Group. 'There's folks cancelling loads to the U.S. right now.' The Nova Scotia-based company, which derives nearly 20% of sales from American customers, warns of potential layoffs if business continues to decline [1].
The Canadian Trucking Alliance reports widespread order cancellations, with many Ontario fleets already implementing or planning job cuts. The organization has called for tax relief, carbon pricing removal, and reduced diesel taxes to help offset impacts [1].
Canada has responded with retaliatory tariffs on $30 billion worth of American products, ranging from appliances to food items, with proposals for additional duties on another $125 billion in goods later this month [1].
The Bank of Canada and economists warn that prolonged trade tensions could trigger a recession and boost inflation within the first year of a trade war. Road shipments represented 52% of Canada's import value and 40% of exports in 2023, with approximately 70% of Canada-U.S. goods trade moving by truck [1].