Elbows UP?

Over the last month I know two operators who hung up their keys due to the direct effect of Trump tariffs. I am certain that this situation is being reflected across Canada with varying degrees of intensity in different locations and markets. The net effect is only surpassed in scale by the mandate controversy in 2022 (which lasted only about a year). The next event before that was the BSE debacle or MAD COW disease which took anywhere from 2-4 years to reopen the border (depending on how you define “reopen”). Drivers leave, return, move around to different markets and switch their routines. It very much seems like dramatic issues come and go, only to be smoothed out and adjusted to overtime.

For those who remember the BSE crisis (Mad Cow), the controversy originated with only one or two cows in Alberta but shut down a multibillion-dollar industry for many months. In the end it became clear that it was not a “safety” issue but an issue of competition. US cattle farmers wanted more exclusive access to the US market, and they lobbied for this for many months. US cattle lobby groups also pressured Governors who pressured Federal administrations to keep Canada out of the US markets. In the end, the US producers fought for higher margins (for themselves). This is natural, we would all do it… if we could (at least to some degree).

Two minutes ago, as I was writing, my wife told me a story. We are renovating an apartment and have a nearly brand-new toilet to sell for $50. She put a picture of it online and had numerous calls. She marked the price as firm. An email offered $30 but my wife said no, $50 firm! A lady then arrived and again offered $30… my wife declined saying $50 was our final price. Then, as if the lady hadn’t heard anything that was said, offered $40. This ticked my wife off, and she started walking away… well… she got $50 but was still annoyed. Everyone is trying to get a better deal. Sometimes people don’t even need a reasonable excuse to demand one.

Trump is no different. He wants a better deal for HIS country. It very much appears that many US Citizens are following the President’s position. If they can, they will. Give him/them a reason… they will push for it.

Before our election (in April 2025), I wrote in my OTR article “How to Survive the Trump Administration”. Please let me humbly quote myself, “…Of course, we have National Pride but now is NOT the time to mouth off to the man in charge. Know our true options because if we go toe to toe… we will probably lose the Canadian Auto Industry…”.

I think the Liberal government’s “Elbow’s UP” campaign may have gotten Liberals enough votes to win the election… but it also came across as toe to toe… “mouthing off to the man in charge”. We as a country are now reaping what our political elbows sowed. Not only has our auto industry been shown to have serious cracks in its hull, but Canada’s “supply management” may now be a target. Who knows… our milk and poultry may go the way of the Digital Services Tax.

Commenting on the Trump administration is a real roller coaster. Who knows if anything that I’ve commented on now will even exist by the time of OTR publication. However, the trail of this behavior by our government cannot be ignored. Being outclassed, outgunned and overpowered is the soup of the day here in Canada. It’s hard to fathom that China got further on a trade deal than we did. The sooner we humble ourselves, the sooner we stop being the target. I’m not implying we ARE wrong, I’m implying we are DOING it wrong.

If we try to rely on EU and Britain, in effect we choose to be “going it alone”. It will take a decade to replace US exports with EU exports (if ever). They simply DON’T have the volume of demand for our products. Without the volume of demand we can’t upgrade our production, our future is marginalized, and our vast resources will be underutilized. Subsidizing industries such as steel (corporate welfare) is no different than citizen welfare other than being more expensive.

Elbows are rarely the answer in cooperation, so maybe one elbow is enough.

About the Author:
Robert D. Scheper is a leading Accountant and Consultant exclusively serving the Lease/Owner operator industry in Canada. His first book in the Making Your Miles Count series “taxes, taxes, taxes” was released in 2007. His second book “Choosing a Trucking company” is the most in-depth analysis of the independent operator industry today. He has a Master’s degree (MBA) in financial management and has been serving the industry since he and his wife came off the road in 1993. His dedication, commitment and strong opinions can be read and heard in many articles and seminars.

You can find him at www.makingyourmilescount.com or 1-877-987-9787.