How New Tariffs Will Impact Trucking and 4 Ways to Stay Ahead

The federal government’s new tariffs will impact cross-border freight volume, operational costs and supply lines in every region in the United States. While the future is uncertain, you can stay ahead by anticipating change and reacting proactively.

How the New Tariffs Will Impact the Trucking Industry

A tariff is a federal tax you pay the government when importing goods. It is typically charged as a percentage of the price you pay a foreign seller. Contrary to popular belief, it is not a fee paid by foreign countries or suppliers. Since it applies to almost all imports — including those from the country’s closest trade partners — it will almost certainly affect the trucking sector.

Understanding the New Tariffs

In April 2025, the Trump administration announced “reciprocal” tariffs to balance the trade deficits between the U.S. and its trading partners. While the minimum rate is 10%, some countries face up to 50%. China, the European Union, Vietnam, Japan and the United Kingdom are among those hit the hardest.

You may have noticed Mexico and Canada were noticeably absent from the list of countries facing import fees. The United States-Mexico-Canada Agreement exempted them from fees applied to goods, but they still face adjusted rates. Canada’s automotive, steel and aluminum exports fall under a separate policy, so they are subject to a 25% tariff.

Why Experts Are Concerned

The industry was just beginning to recover from the low shipping volumes and stubborn rise in operational costs brought on by the years-long freight recession during the pandemic. When the tariffs were announced, many carriers began frontloading goods. You may have been one of them. This signals a steep decline in new freight order activity.

Hamish Woodrow — Motive’s head of strategic analytics — expects to see a drop in trucking activity “as early as the next two weeks” after enforcement begins. Data from Motive shows frontloading into the U.S. — namely, a 48.5% year-over-year increase at the Port of Laredo, which is the country’s busiest land port — began in March.

Experts Weigh In

Tariffs increase how much you pay for fuel, machine components, safety equipment and telematics technology, raising operational expenses. Since the cost of imports will rise across the board, the inevitable logistics changes are more pressing. Many businesses will switch suppliers or stop ordering certain raw materials, potentially affecting your routes and contracts.

Chris Spear — the president and CEO of the American Trucking Association — released a statement on the matter. He stated the 100,000 full-time truckers hauling most of Mexico and Canada’s surface trade will “bear a direct and disproportionate impact.” He believes operational expenses will increase, noting the “price tag of a new truck could rise by up to $35,000.”

As cross-border freight slows, the number of trucks on the road will outnumber shipment volume, potentially forcing you to cut costs. Either way, import fees could indirectly affect your workforce as economic uncertainty pushes your drivers to higher-paying competitors. This effect will not be immediate, if it happens at all. However, it is something to consider.

In an interview, Den Croke — a DAT Freight and Analytics principal analyst — said the “best case scenario” is that the freight market will “be in a bit of a slump” in the six months immediately following enforcement. Despite initially being optimistic about the industry’s outlook in 2025, he believes “any chance of a recovery this year has kind of disappeared.”

How Fleet Businesses Can Avoid Bearing the Full Impact

Unlike retailers, you may be unable to offset increased spending by passing it along to the end customer because you are bound by contracts and must remain competitive. Fortunately, there are other ways to save during periods of economic uncertainty.

1.  Shift to Contractual Drivers and Fleets

Rather than reducing your capacity entirely, consider transitioning some of your workforce and fleet to a contractual model. This gives you flexibility to scale with demand while avoiding the long-term cost of idle assets. It also allows you to offer competitive rates to reliable contractors, keeping your service levels high without the overhead.

2.   Electrify Heavy-Duty Vehicles

According to the U.S. Energy Information Administration, the government imported 8.51 million barrels of crude oil daily in 2023, most of which came from Mexico, Canada, Saudi Arabia, Iraq and Brazil. Now that these countries face high import fees, switching from fossil fuels to battery power may be more cost-effective since electricity prices are not as volatile.

Original equipment manufacturers have made strides in electrification. Lithium-ion batteries must recharge for two hours every eight hours, meaning you can get a workday’s worth of power overnight. Also, they can last for up to 5,000 charging cycles over 10 years. This longevity is essential when combating persistently high prices.

3.   Diversify Suppliers and Partners

There is no telling how the federal government will adjust its reciprocal tariff list within the next few months. Moreover, there is no way to know how other countries will react — they may impose import fees or trade barriers of their own. Supply chain diversification can help you manage growing economic uncertainty, minimizing disruption-related expenses.

4.   Leverage Preventive Maintenance

Like many others, you will likely hold off on upgrading your fleet due to heightened prices. With old vehicles staying on the road longer, preventive maintenance is necessary. It can extend the lifespan of machinery by catching minor issues early on.

This way, you can keep components performing optimally, ensuring equipment failure does not occur mid-route. Sensors, telematics and software will help you generate data-driven insights, but they are not always necessary.

Tariffs Impact the Trucking Industry’s Future Outlook

Many expected 2025 to bring a strong rebound for the trucking sector—but new import tariffs have introduced fresh challenges. While some predict a softer market ahead, others are optimistic the impact may ease within a few months.

The road ahead may be unclear, but with the right strategies in place, your business can stay on course. If you’re considering new suppliers, vendors, or brokers, take the time to thoroughly vet each one to ensure long-term reliability.

If you’re looking for reliable logistics solutions, now is the time to strengthen partnerships that offer flexibility, transparency, and cost-efficiency. Choosing providers with a proven track record can help you navigate uncertainty with confidence and keep your operations moving—no matter what the market brings.