How Polaris Transportation Drives Cross-Border Logistics Success What the U.S.-Canada Trade War Means for Trucking Escalating U.S.-Canada tariffs could disrupt cross-border freight, reduce truck volumes, raise costs, and create new uncertainty for carriers on both sides of the border. Medium- and heavy-duty truck tariffs were among the major sticking points in U.S.-Canada trade talks last week, which broke down Friday, ratcheting up trade tensions between the wo countries. After talks fell through on Friday, President Trump imposed 50% tariffs on $20 billion of the country’s exports on Saturday. Canadian Prime Minister Mark Carney responded by saying the longtime allies were “at war” over trade and announced dollar-for-dollar retaliatory tariffs on American goods starting Sept. 8. The two countries had appeared close to an agreement before negotiations collapsed late Friday. Although several issues remained unresolved, tariffs on medium- and heavy-duty vehicles were reportedly among the sticking points. The escalating dispute also raises new questions about the future of the U.S.-Mexico-Canada Agreement, which governs trade among the three countries. Trump Targets Canadian Auto Industry On Monday, Trump said tariffs on Canadian “cars, trucks, both large and small,” automotive parts and steel would increase to 50% on January 1. It was not immediately clear whether the reference to large trucks includes Class 8 commercial vehicles. Medium- and heavy-duty trucks already are subject to a separate 25% Section 232 tariff imposed in 2025. That tariff explicitly covers Classes 3 through 8, although USMCA-compliant trucks receive special treatment based on their U.S. content. Medium- and heavy-duty vehicles are specifically excluded from the new 50% tariffs on Canadian goods that took effect Aug. 22. What Went Wrong? Each side blamed the other for tanking last week’s deal. According to reporting by Bloomberg, Reuters, and Politico, the talks collapsed in part over cutting U.S. tariffs on Canadian