Canadian Fleet Update Issue 1 2025

New Trump Administration- Ed Gilroy & Dan Horvath

As the political landscape adjusts under the new Trump administration, industry leaders are closely monitoring key agencies that impact transportation policy. The ATA remains optimistic about the industry’s ability to influence decisions, citing strong relationships with DOT Secretary Sean Duffy and EPA Administrator Lee Zeldin. However, concerns persist over Lori Chavez-DeRemer, the pro-labor nominee for Secretary of Labor, particularly regarding policies affecting independent contractors. With preparations underway for various regulatory outcomes, stakeholders are keeping a close eye on agency leadership and policy direction.
A major focus moving forward is staffing within key agencies, particularly the Federal Motor Carrier Safety Administration (FMCSA). Regulatory activity is expected to slow, with an emphasis on reviewing existing policies rather than implementing new ones. A regulatory freeze has already delayed measures such as the light-duty automatic emergency braking requirement. Other ongoing concerns, including drug and alcohol testing protocols involving FMCSA and the Drug Enforcement Agency (DEA), remain on the radar. As the administration prioritizes filling lower level positions and awaits an FMCSA administrator, industry professionals should prepare for a period of regulatory recalibration.

Expectations for the 119th Congress & ATA’s 2025 Legislative Priorities - Henry Hanscom

January marked the beginning of the 119th Congress, where Republicans control both the House and Senate, along with the White House, though with slim majorities. Republicans view this majority as a mandate to advance the Trump administration’s agenda, focusing on issues like taxes, the economy, immigration, energy, crime, and regulatory rollbacks. However, the slim majority will require party unity to pass legislation.
Key opportunities include:

1. Infrastructure: Advancing real investments in roads, bridges, truck parking, and congestion relief.
2. Tax Cuts: Extending and making permanent the Trump tax cuts.
3. Energy & Environment: Rolling back Biden administration policies, particularly in California.
4. Workforce Development: Addressing shortages in drivers and technicians.
5. Regulatory Rollbacks: Challenging mandates on electric vehicles and emissions.

Key threats include:

• Trade & Tariffs: Navigating uncertainties around executive orders and international trade.
• Populism: The rise of pro-union sentiments within the Republican Party, which could challenge business-friendly policies.
• Legislative Hurdles: A turbulent political environment with deadlines for the debt limit, government funding, and tax policy.

The trucking industry sees both challenges and opportunities in this landscape and aims to influence legislative priorities such as tax reform, workforce expansion, and infrastructure investment while navigating the unpredictability of the current administration.

Tariffs & USMCA/CUSMA Review - Bob Costello & Kaitlyn Holmecki

As the Trump administration shapes its trade strategy, tariffs remain a key tool for both economic and political objectives, including border control and funding tax cuts. While ATA opposes the implementation of tariffs based on the potential negative impacts on freight volumes, that opposition must be carefully navigated to maintain a seat at the table when addressing other important regulatory issues. Advocacy efforts against tariffs continue, though much of this work happens behind the scenes.

Looking ahead, the 2026 review of USMCA (or CUSMA in Canada) is expected to be a review rather than a renegotiation. However, there are concerns that the Trump administration may use it as leverage in broader trade negotiations. The trucking industry, led by ATA and CTA, is already engaged in preparations to safeguard its interests. 

Other key issues include the repositioning of empty trailers in the U.S., which has faced significant obstacles both with CBP and on Capitol Hill, making progress unlikely. In contrast, there may be some opportunity to address in-transit moves. 
Stay tuned for updates as trade policy developments continue to unfold.

CARB Update & New Administration’s EPA - Mike Tunnell 

There are a myriad of energy and environmental regulations impacting trucking, particularly in California and at the federal level.

• Fleet Regulations: California's zero-emission fleet purchase mandate and truck TRU electrification requirements were rejected by the EPA, providing relief to fleets. However, compliance with California’s Clean Truck Check (a smog check for trucks) is still necessary.
• Manufacturer Regulations: Several states have adopted California’s strict sales mandates for zero-emission trucks, and federal regulations will also impact truck availability, pricing, and technology.
• Phase 3 Emission Standards: These mandates require increasing sales of zero-emission trucks, including 60% for light-duty trucks and 25% for long-haul sleeper cabs by 2032. Concerns include the feasibility of the technology and the lack of charging infrastructure.
• Industry Response: The focus is on restoring a uniform national standard by revising emission mandates, reinstating previous Phase 2 standards, and revoking California's regulatory waivers to prevent a patchwork of state rules.

The goal is to ensure nationwide truck operability without conflicting state regulations.

Legal Update - Pam Bracher 

Addressing lawsuit abuse remains a top priority for ATA. The following are some highlights of those efforts:

1. Resource Hub: A tool tracking state-level and federal lawsuit reform efforts, available at https://www.trucking.org/lawsuitabuse.
2. Federal Initiatives: Efforts to reintroduce the Highway Accident Fairness Act, aiming to criminalize staged accidents, require transparency in third-party litigation funding, and establish federal jurisdiction for lawsuits over $5 million.
3. State-Level Reforms: Focus on issues like seatbelt evidence, medical bill transparency, damage caps, vicarious liability, and third-party funding transparency.
4. Other Reforms: Shortening statutes of limitations, preventing lawsuits over optional truck equipment, and addressing jury anchoring in trials.

ATA continues to pursue our goal of improving fairness and transparency in trucking-related lawsuits.

Rear Underside Labeling Violation - Kevin Grove

In the U.S., new equipment must have a label for these guards, and it must be maintained throughout the equipment's life, which could create violations for trucks crossing the border from Canada, where such a label is not required. Additionally, labels in the U.S. can become damaged or unreadable. Despite a petition to remove the requirement, the Federal Motor Carrier Safety Administration (FMCSA) initially denied it. However, on December 10th, FMCSA issued this guidance which says it is not a violation for a rear impact guard manufacturing label to be damaged or missing at roadside. Canada does not have a requirement to for these guards to have a manufacturer's label, which would have made compliance impossible for equipment crossing the border. We anticipate that the Commercial Vehicle Safety Alliance (CVSA) will submit a new petition to permanently remove the regulation from FMCSRs, as agency guidance could change. ATA will support CVSA if/when they petition the agency to remove the regulation.

Reminders

Next Canadian Fleet Webinar is scheduled for Wednesday June 11, 2025, 2:00pm – 3:00pm EDT. 

For more information or if you have any questions please contact Bob Costello at bcostello@trucking.org or Kaitlyn Holmecki at kholmecki@trucking.org.