In a startling revelation, TFI International Inc., Canada's largest trucking company, has declared that the ongoing trade war led by the U.S. is causing significant disruptions to their freight volumes, prompting them to abandon a major takeover opportunity.

According to TFI CEO Alain Bédard, U.S. tariffs imposed by President Donald Trump are not just affecting imports but creating a murky business environment that's forcing many companies to revise their strategies. "Our specialized truckload unit is really feeling the pinch as our clients hesitate to commit amidst the chaos," he stated during a recent conference call.

Bédard shared a vivid example highlighting the dilemma: "Imagine being a U.S. farmer uncertain about who will buy your crops. With China pivoting to Brazilian produce, farmers aren't investing in new machinery, which directly impacts us. Fewer orders mean less business for manufacturers of agricultural equipment, and that ripple effect reaches our operations."

As TFI grapples with this uncertainty, the trucking industry in the U.S. faces a precarious recovery from a nearly three-year freight recession that began before Trump took office. The anticipated rebound is now once again under threat due to these imposed tariffs.

TFI has rapidly expanded since 2008, completing 137 acquisitions to become a dominant player with over 80 subsidiaries, including Canpar Express and Loomis Express. However, the tumult of ongoing trade disputes has hampered Bédard's ambitions for further consolidation this year, forcing the company to back out of a recent acquisition deal. He remarked, "The prevailing uncertainty made us reconsider and ultimately scrap any major mergers or acquisitions for now. But we remain optimistic about a significant acquisition in the U.S. by 2026."

Despite the challenges, Bédard noted that TFI's truckload volumes heading to the U.S. remain stable, but they are facing difficulties on return trips. "While exports of Canadian aluminum thrive, we’re struggling on backhaul loads returning to Canada, which are significantly lighter. This imbalance is hurting us," he explained.

In their recent quarterly report, TFI's earnings fell short of analyst expectations, posting an adjusted EBITDA of $259 million on revenues of $1.96 billion. While cautious about full-year financial guidance, the management hinted at projecting profits between $1.25 and $1.40 per share for the upcoming quarter.

Despite these uncertainties, TFI's shares saw an increase of 8% on the Toronto Stock Exchange, signaling a flicker of optimism among investors as they navigate through these tumultuous times.