What Does the Election of Trump Mean for Canadian Trucking?

President-Elect Trump will take office on January 20th, 2025, with control of the House of Representatives, the Senate and the Supreme Court. This means that there will be many changes in government regulations in the United States. Since President-Elect Trump will have full control, he will be able to pass any laws that he deems necessary with very little resistance. Seldom has the President of the United States had this power and opportunity.

What does this mean for TRUCKING in Canada? I think our big concern is about tariffs. Trump has said that he loves the word ‘tariffs’ and in fact, Trump has referred to himself as ‘the tariff man’. If Trump moves ahead as he has stated and planned (he talks about 5%, 10% even 20% tariffs), how will this affect trucking companies, Drivers and more broadly, how will it affect you and I at the store?

I think that trucking could very well see an uptick in the next several months. This increased freight volume may come from companies trying to purchase necessary products from the USA and offshore before a tariff is implemented. They may try to save some money! Once a tariff is implemented, and if the companies were successful in pre-purchasing additional inventory, then the next phase of trucking would be a significant slowdown. The slowdown would be caused because of two reasons: enough inventory to avoid purchasing and transporting more inventory and, the new tariffs on all products coming into Canada would cause you and I to stop purchasing. This will result in an economic slowdown.

This could all take place within the next 12 months. In the life of our economy, a 12-month window is very small, and it begins and ends extremely quickly.

So, what should trucking companies do as we wait for what is next from our US friends? Personally, I would not spend any unnecessary money. If trucking demand goes up in the near term, as perhaps it might, I would not use that as an indication of growth and justification to make any new purchases such as adding trucks to my fleet. If the shipping rates do move up in the near term, they may fall after that slight rush is over. Note that the Trump presidency should be very good for the oil and gas sector.

I think the smart trucking company Owner, and Drivers, should watch their money closely. I suggest you avoid making a major purchase in the next several months. I think we’re heading into a time of uncertainty. I am suggesting that we all wait to see what changes are being made by President Trump and more importantly, how this will affect the Canadian and US economies. Our two economies are very closely tied together, and if tariffs cause a recession in the states, then it will also cause significant harm to the Canadian economy.

We are in for interesting times in the coming months and over the next two years. And I’m only talking about tariffs. There are many other ways that the US can affect our economy, especially immigration issues. These will also be worldwide trade issues. With so many hotspots throughout the world, currently any one of them could turn into a disaster quickly.

With that said, let me say that I hope that my doom and gloom predictions are all wrong. I wish you all peace and happiness at this time of the year. I hope 2025 brings you economic joy, and calm and peaceful surroundings.

Be safe.

Editors Note: On November 20th, just after this article was written, President-Elect Trump stated that in early 2025 he would impose a 40% tariff on all goods coming from China. Economists feel this could cause a recession.

Chris Harris
Top Dawg, Safety Dawg Inc.
905-973-7056
chris@safetydawg.com
@safety_dawg (twitter)