According to an in-depth survey of business executives conducted by KPMG, the U.S. tariffs proposed by President Trump could lead Canadian transportation companies to face rising costs, supply chain disruptions, shifts in freight demand, and customer attrition.
These impacts would undermine the operational efficiency and profitability of transportation firms while significantly affecting the procurement and delivery of major Canadian transportation projects, introducing new complexities, cost pressures, and risks.
To explore how Canadian business leaders are responding, KPMG conducted a nationwide in-depth survey, with a substantial proportion of respondents from the transportation sector.
Canadian business leaders widely anticipate that tariffs will worsen economic prospects. 77% of respondents are preparing for a potential recession due to deteriorating U.S.-Canada trade relations. Within the transportation industry, 77% believe their operations will be impacted by U.S. tariffs, with primary concerns focused on the following areas:
**Competitive Advantage**: Losing customers to U.S. competitors
50% extremely concerned, 35% very concerned
**Logistics Processes**: Cross-border freight movement and tariff payment procedures
50% extremely concerned, 31% very concerned
**Price Control**: Negotiating pricing and profit margins with customers
62% extremely concerned, 27% very concerned
**Supply Chain**: Securing production materials and maintaining resilient supply chains
46% extremely concerned, 42% very concerned
Although tariff policies remain uncertain, transportation companies must proactively adapt to evolving trade dynamics by developing concrete strategies to mitigate risks and implementing resilience measures to sustain growth and competitiveness. Some firms have already initiated risk response mechanisms:
65% of transportation companies are conducting business strategy reviews
85% recognize the need to strengthen supply chain resilience
KPMG notes that while industry-wide concerns exist regarding the operational and profitability impacts of tariffs, proactive risk mitigation measures will help Canadian transportation organizations remain resilient and navigate periods of uncertainty smoothly.
