Proposed tariffs will drive up prices, which in turn will reduce demand. Lower demand translates to less freight
President-elect Donald Trump's proposed tariffs on key trade partners—China, Mexico, and Canada—could significantly impact the $1.7 trillion U.S. transportation industry and deepen the nearly three-year trucking recession, according to industry experts. As the backbone of moving goods Americans produce and consume, the transportation sector is widely regarded as an economic bellwether and is likely to be one of the first industries to reflect any unintended consequences of trade policies that Trump asserts will benefit, rather than harm, U.S. businesses.
Nearly every transportation company in the United States faces potential revenue declines due to tariffs. Major players include trucking and delivery companies like J.B. Hunt Transport Services (JBHT.O) and United Parcel Service (UPS.N), as well as railroad operators such as Canadian Pacific Kansas City (CP.TO) and Union Pacific (UNP.N).
President-elect Donald Trump's proposed tariffs on key trade partners—China, Mexico, and Canada—could significantly impact the $1.7 trillion U.S. transportation industry and deepen the nearly three-year trucking recession, according to industry experts. As the backbone of moving goods Americans produce and consume, the transportation sector is widely regarded as an economic bellwether and is likely to be one of the first industries to reflect any unintended consequences of trade policies that Trump asserts will benefit, rather than harm, U.S. businesses.
Nearly every transportation company in the United States faces potential revenue declines due to tariffs. Major players include trucking and delivery companies like J.B. Hunt Transport Services (JBHT.O) and United Parcel Service (UPS.N), as well as railroad operators such as Canadian Pacific Kansas City (CP.TO) and Union Pacific (UNP.N).
