Tariffs: The Expected Impact on Transportation and Logistics

Whether or not you’re in the importing-exporting business, the planned tariffs are expected to impact most industries because every business needs goods — with many coming from other countries.

For transportation and logistics, a chief concern is the future cost of trucks, as most are assembled in Mexico. The price of steel is also a concern, since most of it comes from Canada, Mexico, and Brazil via China.

Tariffs impact strategies for transportation and logistics to consider

New supply chains

Obtaining supplies from places other than Canada, Mexico, and China will save on tariffs, but could be otherwise costly (you likely picked your current supplier in part based on price).

Also, diversifying supply chains takes time. If you’re making a large equipment purchase this year — say in the $100 million range — if getting those supplies takes longer, will you miss out on higher bonus depreciation if your equipment is delivered in 2026 instead of 2025?

Don’t overcorrect

Tariffs may change or may be temporary. Tariff mitigation efforts should be balanced against the possibility of a short-term return to normal trade relations.

Other cost cutting measures

Since shifting quickly to different suppliers may be more trouble than it’s worth, consider other cost cutting measures to balance the additional expenses such as tax strategies and digital tools to automate operations.

Stay informed

Follow news and updates on the tariffs and any potential changes or negotiations that may occur. Government websites, industry associations, and trade organizations can be valuable sources of information. CLA will also continue to monitor the situation. Subscribe to CLA communications for insight delivered directly to your inbox.