Tariff Uncertainty Takes Center Stage at MARS Conference

Analytics

Tariff Uncertainty Takes Center Stage at MARS Conference

SCHAUMBURG, Ill. — As industries across America grapple with the unknowns of potential tariff changes, the Midwest Association of Rail Shippers Winter Meeting opened with a pressing question: What about tariffs?

The consensus is clear — no one knows for sure. The impending prospect of widespread tariffs under President-elect Donald Trump's administration is a source of unease, as the specifics and their implications remain elusive.

Brandy Christian, CEO of shortline holding company Patriot Rail since July 2024, shared insights from her tenure as CEO at the Port of New Orleans. During the first Trump administration, she witnessed significant shifts in freight patterns: “We saw a change in the flow of freight from an import-export standpoint. The New Orleans market, heavily reliant on imports like steel and rubber, saw a 70% drop. However, other commodities surged, highlighting the need to understand supply chain dynamics.”

Christian added, “From a Patriot perspective, we are revisiting past tariff impacts. Most of our freight is domestic, primarily supporting U.S. manufacturing. While import steel was hit hard, domestic steel production flourished, benefiting the plants we serve.”

BNSF Railway CEO Katie Farmer cautioned, “It’s early days. We aren't sure what tariffs will entail. Our priority is educating policymakers about supply chain importance, regardless of the administration. Certainly, tariffs will affect consumer and agricultural customers, and sound policy is crucial for the American consumer.”

Patrick Lortie, Canadian National's Chief Strategy Officer, confirmed year-long preparations for tariffs. “We've navigated this path before. We're poised to seize opportunities and address risks, particularly as shippers accelerate imports to preempt tariffs.”

A panel discussion on industrial development featured Pauline San Millan from Intersect Illinois. “Foreign companies are exploring onshoring but remain undecided, pending federal policy clarification. Questions linger: Will tariffs apply globally or target specific countries?”

OmniTRAX's Chief Commercial Officer, Ryan Higgins, expressed concerns over cross-border operations. “Tariffs affect steel from Mexico and agricultural goods from Canada. It’s a choice between fast action or inaction amidst uncertainty.”

Chuck Baker, president of the American Short Line and Regional Railroad Association, framed this uncertainty as potentially long-lasting. “Accepting uncertainty may be necessary, as tariff outcomes may remain unclear for months or years.”

Conclusion

As industries brace for potential changes, the MARS Conference highlights both the challenges and strategic planning required to navigate this uncertain economic landscape. Stakeholders remain vigilant, advocating for policies that support American consumers and industries.

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