'It's not going to be pretty': Tariffs will have 'devastating' effect, trucking official says

It's going to take a while before the effects of the tariff war trickle down, but when they do, "it's not going to be pretty," says Chris McKee. 

The executive director of the Atlantic Provinces Trucking Association says tariffs "will have devastating effects on our industry — an industry that's already suffering from one of the worst freight economies that we've seen in roughly 40 years."

McKee called it a "perfect storm" of tariffs on top of a North American freight recession and depressed rates.

He said customers began cancelling orders in the weeks leading up to the start of tariffs, so he expects it to get "exponentially worse in the coming weeks." He said that drop in business varied between 20 and 80 per cent. 

"We expect those flatbed haulers — the folks hauling softwood lumber — and the refrigerated carriers who would be hauling primarily seafood and produce, they could be impacted the worst here." 

In the face of an uncertain future, he said most companies are suspending capital spending plans, fleet upgrades and new equipment purchases "until we really get a good idea of how these tariffs are going to impact our fleets and our businesses."

According to recent data, the four Atlantic provinces export about $26 billion worth of trade to the U.S. each year. 

About 92 per cent of New Brunswick exports are sent to the U.S.

"Trucking touches just about every one of those sectors," said McKee.

He said trucks move 70 to 75 per cent of those goods across the border and reductions in those shipments could result in job losses. 

In Canada, the trucking industry employs 300,000 drivers, McKee said.

"In Atlantic Canada, 25,000 people are directly employed by our industry, with about 11,000 of those being drivers."

Calling on government

The trucking association is asking the government to "immediately remove the carbon tax, especially on the eve of another slated increase on April 1. The removal of the tax specifically would save a trucking company between $15,000 and $20,000 per truck, per year," said McKee. 

"We're also calling on the federal government to remove or reduce the federal excise tax on diesel." 

McKee said they'd also like to see relief packages or programs for truckers affected by the tariff war. 

"We also need long-term planning to improve productivity and efficiency in our industry and in this country."

McKee said governments should remove the interprovincial trade barriers that affect the industry. He said truckers have already provided "a blueprint to help make our lives easier moving freight interjurisdictionally within this country." 

He said government has created a pilot program from the blueprint, "so that's very encouraging to us."

'I'm kind of nervous'

Truck driver Clayton Blake was out delivering natural gas to industrial customers in New Brunswick on Wednesday. He said he's waiting to see "how things shake out." 

While he doesn't think his job in the energy sector is at risk, he's not certain of anything right now. 

"It's a little nerve-racking, I think, because we don't know where the whole fallout is going to end up." 

While he believes his job is safe, as a resident of Maine, he worries about the fallout from the tariff war, especially since so many residents like him get their electricity from New Brunswick. 

"I don't know how all that's going to shake out," said Blake.