Tariff Uncertainty and Trade Barriers: Key Concerns in Alberta’s Commercial Transportation Industry

Published 2025-02-27

The Alberta Motor Transport Association (AMTA) recently conducted a survey to assess the impact of potential trade tariffs and other regulatory challenges on the commercial transportation sector. The results highlight growing concerns about increased operational costs, declining freight demand, and the long-term viability of cross-border trade.

Rising Costs and Reduced Demand One of the most significant concerns among survey respondents is the financial strain caused by the possibility of tariffs. Many companies reported tariffs would lead to increased operational costs, higher equipment and parts prices, and reduced freight demand. Some respondents noted they have already faced contract renegotiations with shippers due to trade uncertainty.

Cross-Border Trade Decline While Alberta-based trucking companies move a variety of goods including agricultural products, oilfield equipment, and consumer goods, the survey indicates that many are already experiencing reduced shipments to and from the U.S. If tariffs are implemented, 21-40% of companies expect a decline in cross-border trade, with some reporting full cancellation of U.S.-bound orders. This presents a major disruption for businesses relying on international markets.

Impact on the Oil and Gas Industry Given Alberta’s heavy reliance on the energy sector, the survey also examined how tariffs might affect oilfield operations. A significant number of respondents believe that increased trade barriers could result in fewer oil and gas wells being drilled and more equipment being relocated to the U.S. Some anticipate the impact on Alberta-based oilfield trucking operations could exceed 80% if tariffs take effect.

Potential Layoffs and Workforce Reductions Several companies indicated they are already considering layoffs due to ongoing trade uncertainties, while others stated they would be forced to cut jobs if tariffs were introduced. Affected businesses estimate that workforce reductions could range from 11-80% within the next few months.

Interprovincial Trade Barriers: A Bigger Concern? Some respondents expressed frustration with interprovincial trade barriers, arguing that red tape within Canada poses just as much—if not more—of a challenge than international trade policies. Concerns were raised over fuel tax reporting, permit requirements, and regulatory inconsistencies between provinces. Several companies urged AMTA to focus on eliminating these domestic barriers to improve business conditions.

Strategies for Mitigation To navigate these challenges, companies are considering multiple strategies, including passing costs to customers, exploring new markets, reducing fleet sizes, delaying equipment purchases, and implementing wage rollbacks. However, these measures are only short-term solutions that may not be sustainable if trade restrictions persist.

Industry Calls for Government Support Respondents emphasized the need for advocacy at both provincial and federal levels. The most requested forms of support include:

Tariff exemptions to protect Alberta-based industries
Fuel tax reliefs or incentives to help offset rising costs
Financial assistance programs for companies directly affected by trade disruptions
Trade policy adjustments to reduce barriers and improve cross-border and interprovincial commerce The Road Ahead While the full extent of trade policy changes remains uncertain, the survey results make one thing clear: Alberta’s commercial transportation industry is facing a challenging road ahead. Whether through proactive government action or industry-led initiatives, addressing both international and interprovincial trade barriers will be critical in ensuring long-term stability for the sector.

If you have any questions, or concerns about cross-border or interprovincial trade, we want to hear from you at memberservices@amta.ca.