After an executive order signed by Trump, shippers could soon see reciprocal tariffs affecting trucking. On August 7, the Trump Administration imposed reciprocal tariffs on dozens of importing countries after months of extensions. The president made the original announcement on April 2 before pausing it until July 7 and August. Current rates for numerous countries differ from the original amounts. While the levies will significantly impact international shipping, they will directly impact moving goods domestically. This article will explain how trucking will be affected and how to protect your shipment.
How Are Reciprocal Tariffs Affecting Trucking and Why Are They Being Imposed?
Trump’s numerous goals behind enforcing tariffs include addressing unfair imbalances and trading practices between the countries. The plan is to “level the field” by reducing the trade deficit with the US’s largest trading partners. Another goal behind the tariffs is to bring manufacturing and jobs back to the US to strengthen the economy. Trump extended the deadlines for months to give trading partners time to renegotiate deals without immediate escalation. Along with international shipping, it will directly affect trucking due to the need for first-mile and last-mile transport. An example is drayage services, which are the movement of goods over short distances, including from the entry port to another location.
Before the tariffs started, truckers benefited from more imports from shippers trying to beat the enforcement date. Now, the industry could see a decline as the demand to import lowers, and truckload activity declines. The main impact that the tariffs will have on the trucking industry is increased costs. Higher costs for imported goods can also elevate the prices for trucking equipment and raise the overall operational cost. Smaller fleets could struggle the most because they cannot keep up with the expenses and potentially go bankrupt. Another issue is that the continuous uncertainty in tariffs could make supply chain planning difficult for the shipper and trucker.
How Can You Protect Your Shipment?
Due to the tariffs’ impact on domestic shipping, it is increasingly essential to protect your shipment. Before deciding on shipping, the shipper must understand the various levies and how they can impact costs. They can do this by being current with current laws and contacting an expert, like a freight broker. The importer using the trucking service can look towards other, less expensive countries to import from. Importers could also break down shipments into smaller components to only pay for tariff-affected goods when shipping domestically. For importers with locations in the US, having a large inventory can be beneficial.
When moving goods domestically, you must know anything that can disrupt your shipment’s success. Disruptions may lead to delays, monetary loss, and loss of cargo. It can also be detrimental if the importer is a company with customers. Another way to protect your shipment is by speaking to a freight broker. Brokers act as intermediaries between carriers and shippers and coordinate cargo movement domestically. They do this by being in contact with a network of carriers that can move your goods by truck. Brokers also provide other solutions, like giving documentation, finding rates, and consultation for transporting your goods successfully. Speak to our brokers at 786-375-9420 or info@a1wwl.com for a quote to begin moving your cargo anywhere in the US.