Trucking Industry Sounds Alarm Over Trump's Tariffs on Mexico and Canada
The American Trucking Associations (ATA) has expressed significant concerns over the latest tariffs imposed on Mexico and Canada by the Trump administration, as these could severe impacts on the trucking industry.
ATA President and CEO Chris Spear supports the administration's action against illegal drugs and immigration. However, Spear warns about the unintended consequences these tariffs could have on the American economy, stressing, "We must avoid exacerbating one of Americans' top concerns: the high prices for goods and groceries."
Economic Concerns
The ATA emphasizes that the success of the USMCA (United States-Mexico-Canada Agreement) and the rise of nearshoring have integrated the North American supply chain. "Imposing taxes on our largest trading partners could reverse this progress, increasing costs for consumers," warns Spear.
Impact on Trucking Operations
The tariffs could disproportionately affect truck drivers, with an estimated 100,000 full-time drivers currently responsible for a substantial portion of the trade with Mexico and Canada. "Tariffs could reduce cross-border freight and increase operational costs," says Spear. He highlights that the price of new trucks could rise by up to $35,000, equating to a $2 billion annual tax, affecting small carriers significantly.
Call for Negotiation
Spear appeals to Trump's appreciation for the trucking industry to reconsider the tariffs, stating, "President Trump demonstrated his negotiation skills with the USMCA. To prevent unnecessary economic pain, we urge all parties to swiftly reach a new agreement."
Industry Reactions
Dean Kaplan, president of The Kaplan Group, anticipates a cascade of impacts on domestic freight carriers, from decreases in freight volume to increased operating costs. Similar concerns are echoed by the Owner-Operator Independent Drivers Association (OOIDA), which warns that tariffs might hinder recovery from the current freight recession, especially affecting small-business truckers.
OOIDA states, "We will monitor these policies closely as trade negotiations develop."
Note: This story will be updated with further reactions from freight carriers.
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For more insights, check out other articles by John Gallagher.