The American Trucking Associations sees danger ahead for the trucking industry unless the Trump administration changes course on the latest tariffs imposed on Mexico and Canada.
In a statement, ATA President and CEO Chris Spear underscored support for the administration in taking action to combat both illegal drugs and illegal immigration that flow across the border – which is why President Donald Trump says he has allowed the new tariffs on the two countries, along with China, to go into effect on Tuesday.
However, “we must also avoid unintended consequences that could exacerbate another one of Americans’ top concerns: the high prices for goods and groceries,” Spear said.
“With the success of USMCA [the United States-Mexico-Canada Agreement on trade] and the growing trend of nearshoring, the North American supply chain has become highly integrated and supports millions of jobs. Imposing border taxes on our two largest and most important trading partners will undo this progress and raise costs for consumers.”
He pointed out that truck drivers will be hit disproportionately, estimating that 100,000 full-time truck drivers are hauling 85% of the surface trade in goods with Mexico and 67% of the goods traded with Canada.
“Not only will tariffs reduce cross-border freight, but they will also increase operational costs,” Spear warned. “The price tag of a new truck could rise by up to $35,000, amounting to a $2 billion annual tax and putting new equipment out of reach for small carriers. The longer tariffs last, the greater the pain for truckers as well as the families and businesses we serve.”
Spear appealed to Trump’s high regard for truck drivers and the trucking industry in encouraging him to adjust the latest cross-border charges on imports.
“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.”
Dean Kaplan, president of The Kaplan Group, a commercial collection agency that specializes in recovering large uncollected debts among businesses, said the ripple effects of the new tariffs on domestic freight carriers could be significant.
“We’re likely to see a cascade of impacts, from potential decreases in freight volumes as trade potentially contracts, to increased operational costs for carriers themselves,” Kaplan told FreightWaves in an email statement. He echoed ATA’s concern on the potential for driving up the cost of new trucks.
“Moreover, any disruptions to established supply chains could force carriers to adapt quickly, potentially altering long-standing routes and operational strategies.”
Asked to comment from the perspective of small-business truck owners, a spokesperson with the Owner-Operator Independent Drivers Association said that tariffs “have the potential to inhibit the recovery from a freight recession that has been acutely felt by America’s small-business truckers,” but that it is too early predict specific downstream economic effects.
“OOIDA’s trade experts will continue to monitor the effects of these policies as trade negotiations develop and will keep our association members informed.”
Note: This story will be updated with reaction from freight carriers on the latest tariffs.
