Brampton trucking industry and thousands of jobs on the verge of collapse as Trump tariffs take hold

A key economic pillar of the country and the backbone of Brampton’s economy, the trucking industry, which is heavily reliant on cross-border trade, is bracing for economic upheaval after Donald Trump imposed 25 percent tariffs on all Canadian goods.

The crippling levies came into effect on Tuesday.

The move, which Prime Minister Justin Trudeau lashed out against in a speech yesterday, squarely placing the blame on Trump alone, has already been met with retaliatory tariffs on $30 billion worth of American goods, with another $125 billion to come in three weeks, setting the stage for what is now the biggest trade war Canada has ever been in.  

Experts warn it will have a devastating impact on Brampton’s huge commercial trucking industry, based in a city that houses Canada’s largest airport and sits along the country’s busiest rail and highway transportation routes. 

With Brampton’s economy so heavily reliant on the trucking sector, industry leaders warn that soaring costs, compounded by the new tariffs, could lead to widespread business closures, mass layoffs, and a ripple effect across the entire supply chain, jeopardizing jobs, trade routes and the city’s economic stability.

“Widespread tariffs on our customers’ freight to US suppliers and consumers will have shocking effects on our membership and the overall supply chain," said Stephen Laskowski, CEO and president, Canadian Trucking Alliance, in a press release Tuesday.

"The longer these tariffs are applied, the more strain there will be on carriers, which will lead to jobs losses and permanent closures of fleets.”

The news release by CTA stated that trucking moves the majority of goods between the two countries, 70 percent by value, of Canada-US trade, with the total value of goods transported across all four modes (air, ships, trains and trucks) reaching $77 billion in March 2024. 

A commercial truck in a Brampton intersection; the sight of large transport trucks is common throughout the city.

(Alexis Wright/The Pointer)

The heavy flow is now being dramatically impacted. 

Fleet surveys conducted by various trucking associations indicate that customers had already started cancelling orders in the weeks leading up to Trump’s tariffs, with reductions ranging from 20 to 80 percent reported by businesses in certain provinces.

In a conversation with The Pointer, Marco Beghetto, a spokesperson for the Ontario Trucking Association, said early signs of financial distress were evident even before the U.S. tariffs were finalized.

"One in three companies that we've surveyed talked about already laying off people," he said. "This was even before the tariffs went in place; another 30 percent said that they expected more layoffs in the future if the tariffs went in place. And now that we know that the tariffs are in place, we can expect that we may see two out of three trucking companies perhaps implementing some sort of layoffs."

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.

Beghetto said the federal government must take immediate action to provide relief to the trucking industry, starting with removing the carbon tax and the federal excise tax on diesel.

"We're talking about immediately providing relief to the trucking industry. What we're asking for is the immediate removal of the carbon tax, especially on the eve of another increase on April 1," he stressed.

"It is basically something that can provide immediate relief. Right now, along with the suspension of the carbon tax, we want the federal government to remove what's called the federal excise tax on fuel. It is a tax that is on diesel fuel specifically, and it serves no useful policy purpose. That should be scrapped immediately as well."

The impact of the tariffs extends far beyond trucking companies, hitting key industries that depend on the trucking supply chain including the auto parts sector which rely heavily on cross-border freight.

Nikhil Sharma, owner of Moraine Transport Ltd., located in Brampton next to Pearson International Airport where hundreds of commercial trucking businesses operate, emphasized that the industry is already feeling the strain, with a steep reduction in daily loads.

“Because basically, we guys are dealing with a lot of freights that include auto parts, (which are now being hit by a 25 percent tariff) that's going to take into effect—less loads are going to go in from here to the U.S., causing turmoil in the economy," he said. "And as you know, our economy is already not doing good. With 25 percent tariffs, it's going to be bad for people on the other side, and it's going to be bad for trucking also, because trucking is going to take the hit. Where you were getting five loads per day, now you're going to be reduced to three loads, or maybe two loads. So there is going to be a lot of bankruptcies, a lot of recession that will be coming in, which is also called a freight recession, and I'm pretty sure the effects are gonna be there.”

Sharma told The Pointer that with reduced U.S. demand due to tariffs, fewer shipments will be available, resulting in oversupply of trucks, increased competition and significant financial burden on the economy, with tens of thousands of drivers in Brampton impacted.

"We have customers, we haul their loads, right, with big companies taking their goods from here to the other side, and when the demand on that side will not be there, because of that, obviously a 25 percent increase, there is going to be that freight recession. It’s basically supply and demand, right."

He said the volume of loads in some shipping sectors could drop by more than half, “resulting in a lot of companies feeling that heat, because we do a lot of trade with trucking across the border, and this is going to take a pretty solid hit on trucking."

Sharma warned that retaliatory tariffs by Canada will worsen the crisis, leading to higher consumer costs and reduced demand.

"That’s even going to be worse. Yes, we can do that, but I mean, the problem is, at the end of the day, at the receiving end, it's going to be consumers," he cautioned.

"Obviously, it's going to be a butterfly effect, where the consumer is going to get hit, and they won't be able to afford certain things."

Baljinder Singh Johal, owner of Sarpanch Redimix, which supplies pre-mixed aggregate products to make concrete for construction materials used in home building, expressed concerns that the tariffs will slow down new home and condo construction in Canada. He fears that reduced demand in the housing sector will directly impact his business, leading to fewer orders. As a result, he may be forced to lay off employees, adding to the broader economic strain caused by the tariffs.

Baljinder Singh Johal, owner of Sarpanch Redimix, says the tariffs will hit the construction industry hard, reducing demand for materials and forcing businesses like his to cut jobs which will have a cascading effect across industries including transportation.

(Muhammad Hamza/The Pointer)

On Tuesday Prime Minister Justin Trudeau said the federal government has already begun taking steps to support Canadian businesses that will be impacted by the trade war U.S. President Donald Trump has created.

“We will use every tool at our disposal so Canadian workers and businesses can weather this storm. From expanding EI benefits and making them more flexible to providing direct supports to businesses. We will be there as needed to help," Trudeau reassured Canadians.

"But Canada, make no mistake. No matter how long this lasts, no matter what the cost, the federal government and other orders of government will be there for you."

He continued.

"We will defend Canadian jobs. We will take measures to prevent predatory behaviour that threatens Canadian companies because of the impacts of this trade war, leaving them open to takeovers. We will relentlessly fight to protect our economy. We will stand up for Canadians every single second of every single day. Because this country is worth fighting for.”

Johal said panic across industries his business is directly tied to has already begun. 

“I am getting phone calls from everyone, there is a tense environment everywhere.” 

Email: muhammad.hamza@thepointer.com 

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