Since the U.S. presidential inauguration in January, the current administration has introduced several tariffs on consumer goods, particularly in trade with Canada and Mexico.  These tariffs, which took effect April 5th, are expected to impact several parts of the economy, including freight volume, supply-chain, and the price of the trucks themselves.  Read on for a brief overview of the changes and dealers can navigate potential industry changes.

Trucking Industry Responds to Tariffs Announcements 

The tariff announcements have sparked a range of responses both domestically and internationally, with the trucking industry especially focused on their potential business impact. The American Trucking Association has shared a statement weighing in on the matter, expressing that tariffs could lead to unintended consequences in the form of high prices for goods and groceries.

MEMA, The Vehicle Suppliers Association, which also includes heavy-duty trucking suppliers, released a statement noting that the tariffs have raised concerns across the sector placing additional pressure on the already-fragile supplier industry. 

How Truck Dealers Can Adjust to Potential Shifts

Dealership owners and truck suppliers can begin to plan for multiple possible scenarios with tariffs amid possible increase of taxes and tariffs. This would be an opportune time to consider which tax deductions your business may qualify for. Additionally, plan to minimize costs and maximize value year round by offering trade-ins, purchasing used inventory, and making tweaks to your sales strategy as needed.  Though the potential tariffs can be a source of concern for truckers, importers, and companies, there is a silver lining. In fact, Hamish Woodrow, head of strategic analytics at Motive, a fleet management software company, shared insights on Motive’s Q1 economic report. 

“Mexico’s role as the dominant trade partner will remain strong. Our data showed trade through the Laredo port is up nearly 30% year-over-year, and October 2024 set a record 677,000 truck crossings,” said Woodrow.

While these changes bring challenges, businesses have the flexibility to adapt to market shifts and stay ahead of trends. Stay informed, plan ahead, and keep moving forward.