After President-elect Donald Trump has continued his support of his campaign promise of implementing tariffs for top trading partner nations, experts within the trucking and transportation industry express concerns for the industry’s future. Predictions suggest that the tariffs would lead to a severely worsened trucking recession, something that they have been battling already for the last three years. The industry currently is said to be a $1.7 trillion industry, but analysts expect this value would strongly decrease as a result of the tariffs.
According to the Trump administration, the top trade partners that would be affected are China, Mexico, and Canada.
Because of how large and prevalent the transportation and trucking industry is in the American life; experts believe that it will be one of the first to show the negative effects from the tariffs. It is known as the economic bellwether, meaning it is one of the first to show signs of economic change. They believe this will be no different should Trump implement the tariffs when he officially takes office in January.
The worry for the industry comes from the predicted outcome that will occur because of the tariffs.
The tariffs that are being proposed will increase prices for most goods. Because the price will go up when most are wanting prices to go down, demand on goods will decrease. The interim chair of the department of supply-chain management at Michigan State University’s business college expressed this belief and he has been supported by many. Others in key analytic positions have expressed their concerns knowing that most transportation and trucking companies that operate within the United States are exposed to tariff-related revenue downturns.
Thus far, no major trucking company has released a statement on their concerns of the tariffs and how they will affect business.
Originally, the tariffs were marketed as a way to promote American business and grow the American job market. However, now that the tariffs could soon be implemented, many are coming to the realization that, being the number one importer in the world, we will not be able to flip to being a largely American market. Additionally, several organizations have already announced price increases suggesting they will follow the trend of costs whether they import for countries that will be affected by the tariffs or not.
Overall, those operating within the trucking and transportation industry are growing more and more on edge. It is unclear at this time how severe the effects will be, but many are confident that effects will be felt nonetheless, with most of them being negative.
