Tariffs Bite Some Trucking Segments More than Others

Although the Trump Administration will wait until March 1 to impose tariffs on Mexico and Canada, it’s not too soon to develop an understanding of how tariffs will affect the trucking industry. Trucking moves more than 70% of all goods transported in the United States, many of which include imports and exports to the affected countries. In addition, such tariffs can raise the price of everything truckers need to operate, most importantly tires, fuel, automotive parts and other goods that keep trucks on the road. Does the President have the authority to unilaterally impose tariffs without Congressional approval or rulemaking? Absolutely!

So how exactly may upcoming tariffs affect ICSA members and other truckers? An article in the Feb. 5 Transport Topics (TT) digital edition says that tariffs on our neighbors to the north and south would have the most immediate impact on trucking and the supply chain, and not just cross-border operations. The industries that would be hardest hit initially are agricultural, manufacturing and automotive products. TT quoted a senior data analyst at Project44, who said:

“If the Trump administration moves forward with proposed tariffs against Mexico, Canada and China, it would impact over 50% of U.S. imports by volume according to Project44 data,” said the Project44 analyst. The analyst went on to say that the U.S. shipped more exports to Canada in 2024 than any other country, accounting for about 43% of all exports. Canada is also the largest consumer of U.S. exports, both by volume and value.

“The potential imposition of tariffs on these countries could not only affect U.S. imports and exports, but also disrupt supply chains, including agricultural, manufacturing and automotive products, resulting in higher consumer prices and tense trade relations,” the analyst said.

According to its website, Project44 is a technology platform that provides supply chain visibility by connecting shippers, carriers, and logistics providers, essentially acting as a neutral intermediary that facilitates tracking and data sharing without directly handling freight as a broker would do.

ICSA is closely monitoring the imposition of new tariffs and their impact on truckers and will keep you informed.