Peel Region—one of Canada’s busiest transportation corridors—is already experiencing the economic aftershocks of U.S. tariff threats, well before they’re fully enforced. From Mississauga to Brampton, the trucking sector is facing cancelled contracts, fluctuating demand, and growing anxiety.
For Chris Smith, operations manager at Musket Transport in Mississauga, the biggest obstacle isn’t the tariffs themselves—it’s not knowing what’s next.
“The biggest challenge for us is the uncertainty,” said Smith. “It’s difficult to make long-term plans when we just don’t know what’s going to happen months from now.”
Some companies are stockpiling shipments in anticipation. Others are scaling down. Several are already letting go of workers. Across Peel, trucking businesses are stuck in limbo—caught between geopolitical decisions and immediate operational pressures.
A Trade War Without Borders
On March 4, the United States officially implemented tariffs on all Canadian imports. In response, Canada imposed 25% retaliatory tariffs on $30 billion CAD worth of U.S. goods.
A temporary reprieve arrived on March 6, when the U.S. delayed tariffs on products compliant with the Canada-United States-Mexico Agreement (CUSMA) until April 2, 2025, affecting about 38% of Canadian exports.
But the see-sawing continues. Canada followed up with another set of retaliatory tariffs on March 12, targeting $29.8 billion worth of U.S. products, including steel, aluminum, and consumer goods—though these too were paused until April.
All of this is creating confusion—and it’s hitting logistics companies where it hurts.
“We’re not directly exposed to steel or aluminum,” Smith noted, “but colleagues who are say there’s a lot of anxiety out there.”
Layoffs, Cancellations, and Chaos in the Chain
According to Marco Beghetto, VP of Communications at the Ontario Trucking Association (OTA), the damage has already begun.
“In Ontario, one-third of carriers surveyed have already laid off employees,” he said. “Two-thirds expect more layoffs if the tariffs move forward.”
He explains that even the threat of tariffs is disrupting contracts. Some U.S. clients are pulling orders altogether. Others are scrambling to ship product while they still can—causing a lopsided surge for certain carriers, and a drought for others.
“What it’s creating is an imbalance across the supply chain,” Beghetto said. “Some carriers can’t keep up, and others are shutting down.”
Illegal operators—part of the underground trucking economy—are also exploiting the chaos. These unregulated businesses avoid labour laws and undercut legitimate carriers, worsening conditions in a sector already on edge.
Local Businesses, Local Impact
Jaipaul Massey-Singh, CEO of the Brampton Board of Trade, says that about 50% of local businesses rely on the U.S. for their supply chain or customer base.
“Some companies are seeing a decline in freight. Others are busier than ever because of pre-tariff stockpiling,” he said. “But everyone is concerned.”
Brampton’s logistics sector alone contributes $2 billion to Canada’s GDP and supports over 24,000 jobs. The stakes couldn’t be higher.
Government Response: Cautious, But Building
So far, no formal federal relief has been announced. But Dan Ciuriak, trade economist and senior fellow at the Centre for International Governance Innovation, says there’s precedent.
“During the pandemic, the federal government stepped in to stabilize businesses. Whether that approach will return for tariffs is still unclear.”
Municipalities are stepping in where they can:
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Mississauga, home to over 290 trucking firms and 3,500 independent drivers, launched an online hub and hosted a session with Export Development Canada.
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Caledon is directing businesses to provincial and federal resources, and launched a Tariff Resource Hub with webinars and tools.
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Brampton continues to advocate for fair trade and is actively assessing risks and support strategies.
The Road Ahead
Tariffs are a federal decision, but their effects are deeply local. For Peel Region’s trucking sector, the road ahead is filled with uncertainty, fluctuating freight, and policy whiplash.
“On the first day of the tariffs, several trucks were turned away at the Windsor border,” Ciuriak said. “When there’s too much volatility, trading companies just stop accepting deliveries.”
In a sector built around precision timing and reliable routes, unpredictability is the most expensive cargo of all.
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