On September 8, 2026, Canada introduced counter-tariffs in response to U.S. trade measures. While the objective is to level the playing field for Canadian industry, certain recently imposed tariffs will unintentionally harm Canada's trucking and transportation sectors without meaningfully protecting Canadian manufacturers.
Key Concerns:
- Canada has imposed a 25% tariff on U.S.-manufactured car-hauling equipment, both new and used units.
- Canada has also imposed a 25% tariff on certain U.S.-manufactured long-haul transportation trailers, including both new and used units, despite limited or no Canadian alternatives.
- These measures will increase operating costs for the transportation industry at a time when carriers are already struggling with elevated diesel fuel costs and economic uncertainty.
- The tariffs will increase costs without stimulating Canadian manufacturing capacity in these specialized equipment categories.
- Higher transportation costs will ultimately be passed on to consumers, contributing to inflation across the economy.
Industry Context
Certain categories of specialized transportation equipment are manufactured almost exclusively in the United States. The Canadian market is too small to support domestic production of many of these highly specialized products, leaving Canadian transportation companies with no viable alternative but to purchase equipment from U.S. manufacturers.
Auto Haulers & Specialized
- Cottrell Inc., a U.S.-based manufacturer, dominates the North American market for large-format nine-car haulers, with an estimated 80-90% market share across Canada, the United States, and Mexico.
- There is currently no comparable Canadian manufacturer capable of supplying this equipment.
- Importing U.S.-built car-hauling equipment is the only practical option for most Canadian carriers.
- The new tariffs impose substantial additional costs on an already fragile sector.
- Increased transportation costs will eventually be reflected in higher vehicle prices for Canadian consumers.
- Tariffs are also being applied to used car-hauling equipment imported from the United States, even though Canadian-owned equipment exported to the U.S. is not subject to equivalent treatment.
- Many Canadian transportation companies placed equipment orders months before the September 8 tariff announcement. The sudden implementation has left companies with little or no opportunity to modify or cancel existing orders, creating unexpected and significant financial burdens for carriers and equipment dealers alike.
Recommendation
- Remove Canadian tariffs on both new and used car-hauling equipment & specialized Long-Haul Trailers.
- Canada's auto transportation, construction, and heavy-haul sectors rely on specialized trailers generally not available in Canada or Canadian manufacturers do not currently have sufficient production capacity to meet industry demand.
- Several trailer configurations required by Canadian operators are not available from Canadian manufacturers.
- Canada's market size does not support domestic production of many specialized trailer categories.
- Even if production were established in Canada, significant capital investment would be required, and it would take years to develop the necessary manufacturing capacity.
- The tariffs increase costs for transportation companies without creating immediate or even long term Canadian alternatives.
- These higher costs will ultimately be passed on to consumers through increased transportation rates.
Conclusion
While Canada's counter-tariffs aim to support domestic industry, tariffs on specialized transportation equipment risk producing the opposite effect. They increase costs for Canadian transportation companies, contribute to inflation, and place additional strain on industries that rely on efficient freight movement, all without generating meaningful benefits for Canadian manufacturing.
About the Authors
This briefing has been prepared by Trans East Trailers Ltd. and CD Jabbco ("TET & CDJ"), Canadian equipment dealers serving the transportation industry with heavy-haul car equipment and other specialized equipment solutions.
TET & CDJ operate throughout Ontario, Quebec, and Atlantic Canada and employ more than 70 people. The companies can provide customer testimonials, industry case studies, and additional supporting information regarding the impact of recently implemented tariffs on Canada's transportation sector.
Contact Information
Joseph Abitbol
Phone: 647-625-7951
Email: joseph@cdjabbco.com
Bill Black
Phone: 416-450-9183
Email: bblack@transeasttrailers.com