Uncertainty still hangs over the Canadian economy despite U.S. President Donald Trump announcing a 30-day pause in tariffs that were to take effect today.

The temporary reprieve halts — at least for now — a continental trade war that economists on both sides of the border warned would raise prices.

Trump’s decision meant Canada and the provinces also halted their moves to retaliate including with tariffs and bans on U.S. alcohol sales north of the border. Unifor, the country’s largest private sector union, insists that Trump’s threat of tariffs remains in effect, threatening Canadian jobs.

Trump on Saturday signed an order to impose 25% across-the-board tariffs on Mexican and Canadian imports, with a lower 10% tariff on Canadian energy.

Truckers say tariffs would cause industry layoffs

Truckers say the tariffs threatened by U.S. President Donald Trump would wreak havoc on their industry as trade between Canada and the United States would take a hit.

The across-the-board taxes of 25% on Canadian imports to the U.S. — now delayed for at least a month until early March — would mark the biggest trade shock north of the border in nearly a century.

Canadian Trucking Alliance president Stephen Laskowski says the fallout could be the final nail in the coffin for many of his group’s 5,000 transport companies, already struggling because of weaker consumer demand.

“If these tariffs came in at those levels for a prolonged period, this could be the final nail in the coffin for many trucking fleets,” said Lawskowsi. “It’s a grim picture.”

The likely decline in total transborder trade would see more drivers turning to the domestic trucking market, said Joseph Khoueiry, whose company Fabreville Inc. operates five tractor-trailers between Toronto and Montreal. As the number of truckers vying for shipping contracts rises, the prices they charge would fall, denting the bottom line.

“They’re going to compete with us. It’s going to affect the rate, it’s going to eat our margins,” he told The Canadian Press.

Khoueiry added that replacement parts for his fleet would also likely see price hikes from the 25% tariff slapped on auto imports from the U.S. — paid for with an even weaker Canadian dollar. Trading for around 68 cents U.S. as of Monday, the loonie has sunk to its lowest level since 2003, with currency experts predicting further declines are likely if markets forecast the tariffs would be here for the long haul.

The trucking alliance has called on premiers to open up interprovincial trade.

Mike Millian, president of the Private Motor Truck Council of Canada, agreed the tariffs would be devastating to the trucking industry. He remains on alert for futured tariff threats, and echoed CTA’s urging to reduce interprovincial trade barriers.

“The PMTC is pleased to see cooler heads prevail for the meantime with a 30-day reprieve while the administrations work together to ensure tariffs are not implemented at all,” Millian said in a statement provided to TruckNews.com.

“While we are not out of the woods yet, this is a positive first step. Lets hope this time is used to ensure we both honor our negotiated and signed trade agreements, and both work together to secure our mutually shared border. In the meantime, Canada should continue working towards removing internal trade barriers to ensure a stronger internally trade partnership for the betterment of our entire country”

This report by The Canadian Press was first published Feb. 4, 2025.