Trade tensions escalated on Tuesday when President Donald Trump imposed a 25% tariff on imports from Canada and Mexico. By Wednesday, the Trump administration introduced a temporary 30-day exemption for automakers, allowing them to adjust their supply chains to the U.S. On Thursday, the administration softened its stance further, with Reuters reporting that Mexico would not be subject to tariffs on goods covered under the United States-Mexico-Canada Agreement (USMCA) until April 2. Several trucking organizations have voiced concerns about the potential consequences, as outlined below.
Industry Reactions to the Tariffs
In a statement issued Tuesday, Chris Spear, President and CEO of the American Trucking Associations (ATA), warned that the tariffs would affect over 100,000 truckers, who transport 85% of the surface trade with Mexico and 67% of trade with Canada. He added that operational costs would rise as a result, with the ATA estimating that the price of a new truck could increase by as much as $35,000.
The ripple effects of these tariffs are expected to reach beyond trucking. Dean Kaplan, president of the Kaplan Group, told FreightWaves that the tariffs could lead to a decline in freight volumes and trade contracts, as well as higher operational costs for carriers.
The Owner-Operator Independent Drivers Association (OOIDA) also weighed in but cautioned that it’s too soon to predict the full economic impact. OOIDA emphasized that the tariffs could hinder the recovery of the freight industry, which has already been facing challenges, particularly for small-business truckers.
Impact on Canadian Trucking Companies
The Canadian Trucking Alliance (CTA) has also expressed concern over the tariffs. The CTA has urged the Canadian government to introduce relief measures for the trucking industry. In a press release, the CTA highlighted that some carriers had already begun laying off employees, with one-third of fleets in Ontario reporting job cuts. The CTA anticipates that this trend will worsen as a result of the tariffs.
A Call for Relief and Resolution
“As we work to strengthen our communities, we must be mindful of the unintended consequences that could drive up costs for consumers, particularly in goods and groceries,” Spear said. He stressed that the USMCA and the trend of nearshoring have made North American supply chains more integrated, supporting millions of jobs. However, imposing border taxes on the U.S.’s two largest trading partners threatens to reverse this progress, ultimately raising costs for consumers.
Spear continued, “The 100,000 full-time truckers responsible for transporting 85% of goods with Mexico and 67% with Canada will be hit hardest. Not only will these tariffs reduce cross-border freight, but they will also increase operational costs, potentially adding up to $2 billion annually. This price hike could make new trucks unaffordable for small carriers.”
He concluded with a call for a swift resolution, noting that the longer the tariffs remain in place, the greater the strain on the trucking industry and the businesses and families that depend on it. “The trucking industry urges all parties to return to the negotiating table to quickly reach a new agreement that avoids unnecessary economic harm.”
Originally reported by Thomas Wasson, Freight Waves News March 6, 2025. Tariffs and trade wars add risks to trucking outlook – FreightWaves
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