If Trump’s paused tariffs move forward Brampton’s massive trucking industry could be crippled

Brampton’s trucking industry, a key driver of the local economy, is bracing for the possible follow-through by U.S. President Donald Trump who on Monday postponed his threatened tariffs for 30 days.

Industry leaders warn that rising costs, shrinking freight demand and shifting supply chains would jeopardize businesses and hundreds of thousands of workers.

Brampton is the hub of commercial transportation in Ontario, with more residents in Canada’s ninth largest city working in trucking-warehousing than any other industry. 

Four years ago there were 55,000 Brampton residents who reported working in the sector when the 2021 Census was conducted, while industry data show there are more than 80,000 residents across Peel employed in the sector.

“This has gotten out of hand,” said Stephen Laskowski, Canadian Trucking Alliance president, on Monday, before Trump backed off the looming tariffs which could go into effect next month. “The reality is the tariffs are unreasonable and are out of proportion to the problem. The tariffs are like taking a sledgehammer to crack a nut.”

The 25 percent tax Trump has threatened (10 percent for the energy sector) on Canadian goods entering the U.S. could have an outsized impact on Brampton due to the huge trucking industry that would be impacted and also because of the city’s large manufacturing base including dozens of companies in the automotive sector. 

Stellantis Canada, an arm of the parent company that owns Chrysler, Jeep, Dodge, Fiat, Maserati and other major brands, operates one of Canada’s largest assembly plants, located in Brampton (it is currently being transitioned to make electric vehicles after the Dodge Charger and Challenger along with the Chrysler 300 were made there for years). Almost 3,000 workers have been employed at the Brampton facility. 

While multiple sectors across Canada would be directly affected if Trump follows through with tariffs, in Brampton it’s the transportation and automotive industries that insiders are most worried about. 

With $350 billion worth of goods moved annually via trucks between the two countries, tariffs would threaten an industry already struggling with smaller margins due to inflationary pressures. The Canadian Trucking Alliance is calling on stakeholders on both sides of the borders to avoid a trade war that will cause high-volume layoffs, company closures and severe disruptions to supply chains in both countries.

Laskowski said while the CTA is firmly behind Ottawa’s strong opposition to Trump he urged leaders in both countries to avoid economic chaos on both sides of the border.

Trucking and logistics employs over 80,000 people across the Region of Peel. 

(Stream Logistics)

“Parliament is where the business of government functions, and so it’s imperative it is restarted as we face this crisis,” he said. “As a nation, we must support Team Canada to withstand these unfair tariffs while also sending a strong message to the Americans that we are ready at the highest levels to work together.” 

In an interview Monday with The Pointer before the tariffs were postponed, Marco Beghetto, VP of Communication and Media for the CTA, said the trucking industry was facing an unavoidable crisis and emphasized that with a 25 percent tariff, the industry would be on the verge of collapse.

"Well, the bottom line is, this is devastating for the trucking industry… We’re an export-based economy, and any tariffs that limit the amount of freight that is being imported into the U.S. or exported from Canada into the U.S. are going to take a hit. As the trucking industry, being the backbone of the supply chain, which carries up to 70 percent of that $350 billion worth of freight into the U.S., trucking is clearly going to be disproportionately impacted, and there's nothing short of devastating that I can say."

He said tariffs would be the final nail in the coffin as the trucking sector is already struggling with skyrocketing costs, shrinking freight volumes and unfair competition from non-compliant carriers operating in the underground economy.

"Companies that won't be able to sustain this are going to have, you know, shrinkages and layoffs and perhaps closures all up and down the supply chain," he told The Pointer.

"As the primary service provider for the supply chain, the trucking industry is obviously going to feel that impact. But I can also add that the imposition of 25 percent tariffs is going to impact a trucking industry that is already suffering from a depressed market of skyrocketing costs and unfair competition by unscrupulous carriers."

He said tariffs would exacerbate problems the CTA has been warning about for years.

"The Canadian Trucking Alliance has been sounding the alarm for close to eight years that our industry is affected by an underground economy of trucking companies that do not comply with the rules, do not comply with labour laws, do not comply with tax laws.” He said tariffs would only add to the unfair situation law-abiding companies find themselves in.

According to recent data shared by Trucking HR Canada, the trucking and logistics sector employed approximately 761,700 workers in 2022; 302,300 were truck drivers. In 2021, according to the Region of Peel’s economic survey, 80,421 residents were employed in transportation, warehousing and delivery. 

Beghetto said U.S. customers are already shifting supply chains and sourcing alternatives, leaving the Canadian trucking industry in a tenuous position.

"I can tell you that anecdotally we have heard from some of our members who are talking to their customers in the U.S., that there are already movements in place to change around the supply chains to look for different providers and to source products from different places," he told The Pointer. It’s too early for layoffs and closures, he said. “But I can tell you that the supply chain is shell-shocked, and there are people all along the supply chain already making contingency plans one way or another."

The Ontario Federation of Labour continued to push for the creation of an emergency task force to counter potential Trump tariffs, also urging Premier Doug Ford to step in and mitigate the damage before it is too late.

“[T]he need for a task force is even more urgent as the thorny issue of interprovincial trade barriers rises quickly to the forefront of Canada’s anti-tariff agenda,” OFL President Laura Walton said in a press release Monday.

“Fighting tariffs is tough enough, but everyone knows how terribly difficult Canada’s interprovincial trade debate is, and we won’t get it right without everyone at the table.”

According to the Canadian Centre of Commerce’s (CCC) Canada–U.S. trade tracker, nearly half a trillion dollars ($446,575,000,000) in two-way goods were traded between Ontario and the U.S. in 2023. The organization has warned that 25 percent tariffs would “severely harm the unique Canada-U.S. trading relationship, hurting workers and businesses on both sides of the border. Tariffs would raise the costs for consumers, further compounding affordability problems.” The CCC estimates the threatened tariffs could shrink Canada’s GDP by 2.6 percent, costing Canadian households an average of $1,900 (CAD) annually. In the U.S., the organization predicts this would result in a 1.6 percent GDP drop, with families spending $1,300 (USD) more a year.

In Peel, transportation and manufacturing would not be the only sectors hit hard if tariffs are introduced. 

The agricultural industry generates nearly $100 million in revenue for the region’s economy annually.  

Ontario Federation of Agriculture President Drew Spoelstra told The Pointer that, “Tariffs and counter-tariffs will have implications for farmers and consumers on both sides of the border. If costs on the farm go up, consumers will feel it at the grocery store. The drop in the value of the Canadian dollar against the U.S. currency will also have an impact.”

Mississauga Mayor Carolyn Parrish issued a statement Monday urging residents to support Canadian-made products and shop at local businesses to mitigate the possible impact of Trump’s tariffs. 

"By making conscious choices to support Canadian businesses, especially here in Mississauga, we can turn this challenge into an opportunity for growth.”

She has a track record of getting her back up in the face of U.S. aggression.

“We will continue to stand by our businesses and residents to ensure they have the tools and support needed to overcome this situation and emerge even stronger.” 

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