US cross-border trucking reactions to latest trade tariffs

The recent fluctuations in tariffs have prompted trucking carriers and shippers to carefully monitor the shifting landscape of import duties, which may change again next month. The White House announced a suspension of tariffs on imports compliant with the United States-Mexico-Canada Agreement, but only until 02 April 2025. This announcement also follows a tariff exemption for car imports from Mexico and Canada.

Chris Spear, President and CEO of the American Trucking Associations (ATA), noted that while the industry is recovering from a prolonged freight recession, these tariffs could lead to decreased freight volumes and increased operational costs. He emphasized that a 25% tariff on imports from Mexico could raise the cost of a new tractor by up to $35,000, creating financial strain for both small and large carriers.

Similarly, the Canadian Trucking Alliance (CTA) warned that prolonged tariffs could not only burden carriers but also potentially lead to job losses and fleet closures. Stephen Laskowski, President and CEO of CTA, highlighted that surveys showed one-third of fleets in Ontario were considering layoffs, with this trend likely worsening if tariffs persist.

JB Hunt Transport Services seems to be adopting a wait-and-see strategy, with potential tariffs influencing their future purchasing and business decisions, according to EVP of Sales and Marketing Spencer Frazier on 16 January 2025.

Union Pacific, covering much of the US West and with connections and investments in Mexico, is prepared for potential tariff-related impacts. CEO Jim Vena stated in December 2024 that if demand slows, the company can reduce costs. In January 2025, he expressed hope that tariffs were a negotiation tactic, emphasizing that US consumers wouldn’t benefit from price increases due to a dispute unless there was a strategic national security reason. Last month, Vena confirmed that Union Pacific was ready to handle any outcome from the tariffs, as it remains a major player in cross-border rail traffic with Mexico.

CH Robinson has seen an increase in requests for USMCA exemptions following the pause on tariffs for compliant goods from Canada and Mexico. Shippers are now more motivated to seek qualification, despite the process being time-consuming and resource-intensive. Mike Short, President of global freight forwarding, emphasized the complexity of the qualification process.

Uber Freight has seen a big increase in volume at key border crossings, especially from Mexico, as shippers hurry to get goods across before tariffs go up. Some are even trying new customs strategies, like breaking down shipments to only pay duties on the materials affected by the tariffs. This is making cross-border logistics a bit more complicated, according to Jose Guerrero, Director of US Customs Operations.

Finally, Schneider National President and CEO Mark Rourke stated on 30 January that while some customers expedited shipments ahead of the trade policy’s implementation, this was “not consistent or representative across the entire customer base.”

As the trade tariff landscape evolves, logistics providers are left to question how long they can adapt to the shifting tides before these disruptions become permanent, raising critical questions about the future stability of cross-border supply chains.

This story originally appeared on Transport Intelligence.