Sounding the Alarm

The Canadian Truck Dealers association calls for urgent Canada-U.S. regulatory fix.

The Canadian Truck Dealers (CTD) association, which represents heavy and medium-duty truck dealers across Canada, is raising the alarm about a possible shortage of new trucks if the Canadian Government doesn’t act fast enough to to maintain regulatory alignment with the United States.

Speaking on Parliament Hill in May, CTD Executive Director Kevin Disher highlighted growing concerns about the future availability and affordability of commercial vehicles in Canada.

“Manufacturers are already preparing their next generation of trucks around evolving U.S. environmental and emission regulations, but Canada has not yet provided a clear and aligned regulatory pathway that would allow these trucks to continue being imported into Canada,” said Disher.

The concern stems from the highly integrated nature of the North American commercial vehicle market. With limited domestic manufacturing capacity for medium- and heavy-duty trucks, Canada relies heavily on vehicles produced elsewhere in North America. Industry leaders warn that if Canadian regulations diverge significantly from those in the United States, manufacturers could face additional compliance costs and complexities, potentially limiting the availability of certain vehicle models in Canada.

“This is a very serious problem because it covers Class 2 to Class 8 vehicles.”

- Kevin Disher, Executive Director, CTD

EPA vs. ECCC

“When it comes to emissions,” Disher explains, “2027 regulations were outlined years ago. In December 2022, the U.S. EPA (Environmental Protection Agency) adopted a new low-NOx regulation with compliance set for 2027. Basically, they wanted to reduce NOx emissions and particulate matter, and all OEMs and engine-builders would have to comply by 2027.”

Although much has changed since 2022, including the fact that the new White House Administration has made changes to environmental standards, Disher says that engine manufacturers have no intention of going backwards, and are therefore pushing ahead with plans to comply with the emission standards due to come into effect next year.

“They were already well on their way to implementing 2027 regulations, and since the ECCC (Environment and Climate Change Canada) normally adopts EPA standards, engines are imported into Canada with EPA regulations,” Disher explains.

This is where the rubber meets the road, and where the issue at hand seems to be at play. The EPA typically issues a CoC (Certificate of Conformity), which allows trucks and engines to come into Canada. “However, now that there is no CoC, there is no way for these trucks to come into Canada, because the ECCC hasn’t addressed how they’re going to certify them to come into Canada,” Disher says.

In other words, the holdup is really a paperwork issue. The trucks and engines comply with the new more stringent emission standards, so they should be allowed into Canada, but the paperwork is missing.

Although the industry is warning about shortages in 2027, this is an issue that needs to be cleared up as soon as possible, simply because truck dealers across Canada can’t even order vehicles for their customers due to the lack of paperwork. This, in turn, means that fleets can’t plan for 2027 and beyond, which is sure to result in cascading economic challenges.

“The new engines are not allowed into Canada,” Disher says, “and our dealers have told us that they can’t even put the engine specs into their databases and place orders.”

Class 2 to Class 8

This paperwork problem is affecting a broad range of vehicles, with potential consequences for many industries. “This is a very serious problem because it covers Class 2 to Class 8 vehicles, which includes fire trucks, school buses and much more,” Disher explains. “Since fleets have revolving replacement cycles, this shortage will interrupt those cycles, which could be detrimental to the economy.”

To help raise awareness, and to get the bottleneck removed, the CTD has been meeting with federal government officials, and senior officials from the ECCC.

“Canadian policymakers need to understand that without clear regulations and urgent action, there is a very real risk that Canadian businesses and fleets could face serious challenges accessing the trucks and equipment they rely on every day,” added Disher. “In an integrated North American market, regulatory certainty is essential to maintaining supply chains, affordability, and economic stability.”

The stakes are significant. Approximately 29,000 Class 8 trucks alone are sold in Canada annually, generating more than $8 billion in economic activity. For fleets, truck availability directly affects replacement cycles, capacity planning, operating costs and service levels. Any disruption to equipment supply could ripple throughout the broader economy.

The issue is further complicated by ongoing trade and tariff pressures. The CTD argues that regulatory misalignment would add another layer of cost and uncertainty by creating additional barriers to cross-border trade and vehicle production. Industry representatives contend that maintaining close alignment with U.S. standards is essential to preserving the efficiency of North America's interconnected supply chains.

Broader implications

Higher equipment costs ultimately affect more than just fleets and dealers. Since trucking remains the backbone of Canada's freight transportation network, increases in vehicle acquisition and operating expenses can contribute to higher costs for goods moving through the supply chain. Nearly $2 trillion worth of freight is transported by truck in Canada each year, supporting an industry that employs approximately 800,000 Canadians, including about 40,000 workers in truck dealerships.

Looking ahead, the CTD is encouraging the federal government to work closely with industry stakeholders to develop practical regulations that support investment, preserve access to commercial vehicles and protect supply chain stability. The association has also indicated that its members are prepared to provide policymakers with market intelligence and industry expertise as discussions continue.

The good news is that things seem to be moving in the right direction, at least for now. “The ECCC has told us that they’re aware of the fact that there’s a backlog of paperwork that they need to address,” Disher says. “We told them that they need to come up with a solution—either temporary or longterm—so that we can keep the supply of trucks and engines moving. They agreed, and we’re working on the next steps with them. It’s very positive news.”