What the U.S.-Canada Trade War Means for Trucking

Escalating U.S.-Canada tariffs could disrupt cross-border freight, reduce truck volumes, raise costs, and create new uncertainty for carriers on both sides of the border.

Medium- and heavy-duty truck tariffs were among the major sticking points in U.S.-Canada trade talks last week, which broke down Friday, ratcheting up trade tensions between the two countries.

After talks fell through on August 25, President Trump imposed 50% tariffs on $20 billion of the country’s exports on Saturday. Canadian Prime Minister Mark Carney responded by saying the longtime allies were “at war” over trade and announced dollar-for-dollar retaliatory tariffs on American goods starting Sept. 8.

The two countries had appeared close to an agreement before negotiations collapsed late Friday. Although several issues remained unresolved, tariffs on medium- and heavy-duty vehicles were reportedly among the sticking points.

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