President Donald Trump’s tariffs threaten to lengthen the freight recession of the past two years, hurting cross-border carriers the most, trucking groups warned this week.
The U.S. implemented tariffs against Canada and Mexico on Tuesday after lifting a month-long pause, and also increased tariffs on China by 10% a day prior.
While American Trucking Associations President and CEO Chris Spear praised Trump's emphasis on tackling security for the U.S. borders and halting the flow of fentanyl, he noted the impact tariffs will have on truckers.
“The 100,000 full-time hardworking truckers hauling 85% of the surface trade in goods with Mexico and 67% of the goods traded with Canada will bear a direct and disproportionate impact,” Spear said in a statement Tuesday.
Spear had previously expressed doubt the Trump administration would implement across-the-board tariffs. He told Trucking Dive in December the trade group expected “something more surgical, more strategic, a little more judicious” than Trump’s campaign rhetoric suggested.
“I think they’re all smart enough to know that if you go all in on tariffs, there’s the potential for counter tariffs and inflation as a result,” the ATA CEO said in December. “So I don’t think they want to do anything that’s going to have an adverse impact on the economy.”
As a result of the tariffs, the price for a new truck could rise by up to $35,000, which could put new equipment out of reach for small carriers, Spear said. Tariffs may also contribute to a reduction in cross-border freight and increase costs of operations as well as direct costs for consumers.
“The Trump Administration knows our industry well and understands how vital trucking is to our economy and supply chain,” Spear said. “President Trump proved his dealmaking skills during his first term by negotiating the USMCA. To prevent unnecessary economic pain, the trucking industry urges all parties to come to the table once again to swiftly reach a new agreement.”
The Owner-Operator Independent Drivers Association warned Wednesday that the tariffs “have the potential to inhibit the recovery from a freight recession that has been acutely felt by America’s small-business truckers.”
“But it is too early to make predictions on specific downstream economic effects,” an Owner-Operator Independent Drivers Association spokesperson told Trucking Dive in an emailed statement.
According to the Candian Trucking Alliance, or CTA, trucking moves about 70% of Canada-U.S. trade. Last March, Canada-U.S. trade moved by all four transport modes had a total value of $77 billion.
Due to the growing concerns from tariffs, some carriers in Canada have begun laying off employees while certain customers have been canceling orders, CTA said in a statement.
“As many as one in three fleets surveyed in Ontario, for example, indicated layoffs – a number which is expected to grow in the aftermath of the tariffs,” according to fleet surveys conducted by trucking associations the CTA said.
The longer that tariffs are in place, they will not only put a strain on carriers but also lead to job losses and permanent closures of fleets, said Stephen Laskowski, president and CEO of the CTA.
