President Donald Trump went through on his threat to levy tariffs against neighbors Canada and Mexico on Tuesday, which trucking industry analysts and executives have warned could push up vehicle prices and redraw supply chains.
Beginning just after midnight on March 4, imports from Canada and Mexico will be taxed at 25%; Canadian energy imports get a 10% tax; and Chinese imports that were levied with a 10% tariff in February, now face 20% duties.
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The tariffs add disruption to freight markets, supply chains, and economic health indicators. As the uncertainty around cross-border trade intensified during the early weeks of Trump’s second act, shippers began to expedite their freight. As the freight market is set to rebound in 2025, shippers are also reevaluating their costs but feel somewhat prepared for disruptions.
Business and consumer concerns
The threat of tariffs also harmed U.S. consumer confidence. The Conference Board’s Consumer Confidence Index plummeted to an eight-month low in February—the largest one-month drop since August 2021—attributed in part to tariff threats and inflation worries.
Major stock market indicators also plummeted on Monday and fell during overnight trading. Valuations of the Dow Jones Industrial Average fell 1.48%, the S&P 500 fell 1.76%, and the Nasdaq Composite fell 2.64%, according to CNN.
The business community broadly opposes tariffs. According to a recent IndustryWeek survey over half of respondents view Trump’s performance negatively, with emphasis on his tariff policy.
