President Trump recently imposed a new 25% truck tariff on heavy-duty carrier imports that will take effect on November 1. On September 25, the Trump administration announced levies on various cargoes, including pharmaceuticals, furniture, and trucks. The announcement was made after the Commerce Department began a Section 232 investigation in April 2025. Section 232 of the Trade Expansion Act allowed the enforcement of tariffs on foreign goods to protect national security. Previously, truck imports into the US were duty-free. Despite the announcement, the president has not yet released many details regarding the tariff implementation. While tariffs would significantly affect international shipping, they would also affect the domestic movement of goods.
Why is Trump Imposing A 25% Truck Tariff?
Along with the various reasons behind enforcing a 25% tariff on truck imports, Trump aims to strengthen American manufacturing. The administration is increasing importation costs to incentivize automakers to reshore production back to the US. Trump believes this will stimulate the US economy by creating jobs; however, economists note this would have the opposite effect. Trump is also trying to reduce dependence on other nations and stop the inflow of fentanyl from countries like China. Another goal is to “level the field” by reducing the trade deficit between the US and other trade partners. Since Trump’s return to office, he has placed levies on numerous countries and reciprocal tariffs on all US trading partners.
Although Trump has not released much information regarding tariffs, legal questions have already been raised. In particular, under the USMCA (US-Mexico-Canada Agreement), vehicles made in North America are exempt from tariffs. A belief is that Trump may override USMCA protections and enforce the levies. Approximately 90% of trucks that came into the US last year were imported from Mexico and Canada. Manufacturers also have a tax on steel and aluminum imports used to make truck parts. Despite this, Trump believes that US truck makers will benefit from import tariffs, stating, “We need our Truckers to be financially healthy and strong, for many reasons, but above all else, for National Security purposes!”
What Can The Tariff Mean For The Shipping Industry?
The tariffs could significantly impact shipping due to the number of heavy-duty trucks the US imports from other countries. An immediate effect could be rising costs for importers and trucking companies, which could soon fall on customers. Many popular automakers have international supply chains for importing components and complete vehicles. The costs can come from the tariffs on other levies, including imports from Canada and Mexico, and aluminum. Importers also fear that other countries affected could impose their own retaliatory tariffs. Manufacturing companies may relocate back to the US; however, it could take years to finalize.
While tariffs could cause disruptions in shipping goods by truck, they should not stop cargo movement. A shipper must, however, take steps to mitigate delays, cargo loss, and higher costs. Along with planning and being current with the news, you can do this by speaking to a freight broker. Brokers are the intermediaries between shippers and carriers and coordinate freight transport on behalf of the shipper. They do this by offering numerous solutions like negotiating rates, finding carriers, managing shipping logistics, handling documentation, and more. A1 Freight Solutions has brokers and other services for navigating domestic shipping. Speak to our brokers at 786-375-9420 or info@a1wwl.com for a quote to begin moving your goods anywhere domestically.