Canadian transportation companies are sounding the alarm over potential fallout from proposed U.S. tariffs, with rising operational costs, supply chain disruption and customer loss topping industry concerns, according to a new KPMG report.

KPMG surveyed business leaders across the country and found that 77 per cent of transportation executives believe their companies will be directly impacted by U.S. trade actions. Half said they are extremely concerned about losing customers to American competitors, and a similar number flagged challenges with cross-border logistics.

“Tariffs have a significant impact on the competitive landscape in transportation due to increased costs for domestic manufacturers who rely on imported materials,” the report states.

Price pressures were also flagged, with 62 per cent of transportation respondents extremely concerned about maintaining margins and 88 per cent expressing strong concerns about supply chain reliability.

The report warns that tariffs could delay major infrastructure projects and increase costs through customs bottlenecks and fuel price fluctuations. In response, 65 per cent of transportation companies have initiated strategic reviews, while 85 per cent recognize the urgent need to build supply chain resilience.

KPMG recommends transportation firms focus on cost optimization, AI-assisted logistics planning, contract renegotiation and workforce training. The report also encourages exploring markets beyond the U.S. and leveraging government support programs to cushion the financial impact.

Three-quarters of companies surveyed said easing interprovincial trade restrictions would help offset the effects of U.S. tariffs, with 42 per cent saying it would be critical to their survival.

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