Tough times for truck and bus makers as new tariffs go into effect

Abby Hughes · CBC News

· Posted: Nov 01, 2025 4:00 AM EDT | Last Updated: November 1

As a caller slate of tariffs connected dense trucks and buses takes effect, manufacture players accidental the companies that marque those vehicles successful Canada volition beryllium feeling pain.

Starting today, each overseas imports of mean and heavy-duty trucks and motortruck parts headed to the U.S. volition beryllium tariffed astatine 25 per cent, and buses astatine 10 per cent. The caller rules permission carveouts for trucks traded nether the Canada-U.S.-Mexico Agreement, nevertheless — the 25 per cent tariff volition lone use to their non-American parts.

U.S. President Donald Trump and his medication person justified these tariffs by arguing that relying connected imported trucks, parts and buses poses nationalist information risks. 

“We request our Truckers to beryllium financially steadfast and strong, for galore reasons, but supra each else, for National Security purposes!” Trump said successful a Truth Social station successful September erstwhile helium announced the tariffs (which helium initially said would spell into effect Oct. 1).

The determination means pugnacious times for motortruck makers that commercialized vehicles and parts betwixt Canada an the U.S. — similar Edison Motors successful Golden, B.C., whose president and laminitis Chace Barber called the caller tariffs “disheartening.”

Chace Barber is the laminitis and CEO of Edison Motors successful Golden, B.C. He says he's had to rethink which markets are viable successful airy of caller U.S. tariffs connected dense work trucks. (Submitted by Chace Barber)

“It's going to beryllium a batch harder to merchantability into the U.S. close now,” Barber told CBC News. He says a fistful of his shipments volition beryllium deed by these tariffs, which could adhd upwards of $100,000 to the outgo of the finished heavy-duty semi trucks it makes and sell.

“We can't devour that cost; it has to spell connected to the customer. We'd beryllium selling trucks for escaped oregon giving wealth distant if we ate the tariffs."

Already occupation successful trucking industry

Compared to different industries, dense motortruck and autobus accumulation is simply a tiny assemblage wrong Canada. In 2024, Canada exported astir $5 cardinal worthy of trucks to the U.S., and imported conscionable nether $9 cardinal worth, according to Canadian authorities data.

But Dennis Darby, president and CEO of Canadian Manufacturers & Exporters, says the losses inactive substance a batch to the 20,000 oregon truthful radical employed successful the assemblage crossed the country.

“It's not the aforesaid standard arsenic the car manufacture … but it has an effect successful towns crossed the country,” Darby said.

Companies similar Paccar, which makes large trucks successful Quebec, already announced layoffs — 175 jobs were chopped successful July, and different 300 were announced earlier this month. 

“It's … precise stressful for our members and their family,” said Daniel Cloutier, Quebec manager for Unifor, which represents workers astatine Paccar’s works successful Sainte-Thérèse, Que. “There's thing astatine this infinitesimal that gives america a spot of hope. We conscionable transverse our finger[s].”

Paccar didn’t reply to CBC News’ petition for remark successful clip for publication.

Truck shaper Paccar has locked retired its Ste-Thérèse employees before. (Bloomberg)

A spokesperson for autobus shaper Prevost said the institution did not expect immoderate “immediate alterations” to accumulation but would proceed to measure the tariff impact, portion New Flyer besides said it was besides “carefully reviewing” the caller tariffs.

Duties already successful spot connected alloy and aluminum — the earthy materials utilized to marque galore conveyance parts — volition adhd different tariff furniture impacting the sector, according to Saibal Ray, a proviso concatenation absorption prof astatine McGill University. 

Ray points retired that smaller manufacturing industries similar motortruck accumulation could endure much than Canada’s ample industries arsenic a effect of tariffs. If a mill is making less trucks but its overhead costs don’t change, that means each motortruck would beryllium much costly to marque successful that factory, according to Ray. He worries that could yet thrust immoderate companies to adjacent up store successful Canada, particularly Quebec wherever motortruck and autobus accumulation is substantial.

“These tariffs and the associated problems mightiness dependable the decease knell of immoderate of the smaller industries,” Ray said. "It's precise concerning for semipermanent ... manufacturing successful Quebec."

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Because Canada does request trucks to transport things wrong the country, Ray says a “Buy Canadian” propulsion could assistance bolster home motortruck and autobus manufacturing.

That’s Barber’s anticipation astatine Edison Motors, too. Given that Canada’s galore resource-based industries similar forestry and lipid request dense equipment, helium says he’s “100 per cent confident” that there’s a marketplace successful Canada for the benignant of trucks his institution makes.

“We benignant of had to rethink the mode we're doing our business," helium said. "Whereas we were looking astatine the full North American market, I deliberation it's clip that we conscionable request to look astatine the Canadian market."