Werner Enterprises is closely monitoring tariffs threatened by President Donald Trump, as 10% of the carrier’s revenue is tied to cross-border shipments with Mexico, Chairman and CEO Derek Leathers said on an earnings call Thursday.
The truckload giant is communicating with customers about the delayed tariffs on the U.S.’s closest trading partners, which “could change any time, any day, any hour,” Leathers said.
"Potential tariff policy continues to be a moving target," Leathers said, adding that it's "difficult to comment specifically on depth and duration as information is changing in real time.”
Trump's tariffs against China, which he ordered to begin last Tuesday, are an additional 10% duty on the value of the goods. Canada and Mexico leaders arranged for one-month pauses from the U.S. implementing an additional 25% duty against their countries.
But the Werner executive also gave some clarity amid trade policy uncertainties, saying tariffs against Mexico, Canada and China are expected to affect the supply chain system.
Other carriers felt tariffs were less disruptive. Schneider National President and CEO Mark Rourke said Jan. 30 that some customers moved to pull forward goods before the trade policy took effect, but that was “not consistent or representative all across the customer base.”
In a similar vein, most J.B. Hunt Transport Services appeared to be taking more of a wait-and-see approach with potential tariffs influencing future purchasing and business decisions, EVP of Sales and Marketing Spencer Frazier said Jan. 16 on an earnings call ahead of Trump’s inauguration.
The tariff negotiations have played out as anticipated, with strong rhetoric from the U.S. driving action by Mexico and Canada to postpone or perhaps avoid them altogether, Leathers said. In general, Werner’s customers haven’t pursued a fundamental change in shipping patterns or dramatic tariff-avoidance techniques, he added.
"Obviously, Mexico is an important part of our portfolio. We've had multiple talks with our shippers," he said.
Nevertheless, Werner is prepared for supply chain disruptions with agile solutions, Leathers said.
