“Logistics Pulse” is your cheat sheet and to-do list for everything about trade, the supply chain and logistics. We dive deep into the latest news headlines and industry trends and equip you only with actionable insights you can use to improve your business—no matter your industry or role in the supply chain. Presented by Mothership.

‍

‍

In a joint session of Congress this week, President Donald Trump shared his economic policy, including the increasing use of tariffs. On the same day, the U.S. imposed 25% tariffs on imports from Canada and Mexico and an additional 10% tax on China. We look at how Trump's tariffs have already started to change the North American supply chain.

‍

We also break down how the trucking and freight industries in the U.S. and Canada responded to and reacted to the Canadian Trucking Alliance and American Trucking Associations' position that the logistics industry would be disproportionately impacted. We also explore why some truckers might want more tariffs and what this means for the economy and consumers' finances.

‍

U.S. tariffs on Canada and Mexico: The trucking and freight industries’ response

‍

Host 2  00:00

Ever get that, like, you know, that feeling that the stuff you buy is somehow tied to, like, you know, big global things?

‍

Host 1  00:08

Oh, yeah, definitely. 

‍

Host 2  00:09

Well, today, we're going to kind of, like, peel back the layers on that, right? We're doing a deep dive into President Trump's 25% tariffs on stuff coming in from Canada and Mexico. 

‍

Host 1  00:20

Okay. 

‍

Host 2  00:21

And we're going to look at how those tariffs could really slam the brakes on the truckingindustry and, by extension, like you know, your wallet.

‍

Host 1  00:29

Makes sense. 

‍

Ad Read  00:30

Welcome to Logistics Pulse, sponsored by Mothership. Skip the broker to save big on LTL shipments or deliver same day nationwide. For more insights like these, don't forget to subscribe to Logistics Pulse on YouTube, Spotify, or wherever you get your podcasts. 

‍

Host 1  00:47

It is interesting. You know, we hear about tariffs all the time, right? But we don't really, like, dig into how they actually affect our daily lives.

‍

Host 2  00:56

Right. Yeah, exactly. And to get that complete picture, we've got some great insights from both sides of the border. 

‍

Host 1  01:02

Gotcha. Okay.

‍

Host 2  01:02

The Canadian Trucking Alliance (CTA) and the American Trucking Associations. So by the end of this deep dive, you'll get a good grasp on how these tariffs are shaking up the trucking industry.

‍

Host 1  01:14

Okay.

‍

Host 2  01:14

Which you know, at the end of the day, that's what determines the price and availability of basically everything you buy, right?

‍

Host 1  01:19

Yeah, for sure. It really makes you think, like, who's going to feel the feel the impact first, you know?

‍

Host 2  01:24

Yeah.

‍

Host 1  01:24

Where's it going to hit hardest right out of the gate?

‍

Host 2  01:27

Well, the Canadian Trucking Alliance, the CTA, they're not holding back. They're saying these tariffs could be, like, a potential catastrophe.

‍

Host 1  01:36

Really?

‍

Host 2  01:37

Epecially because, you know, they're already dealing with the toughest freight economy in, like, what, 40 years?

‍

Host 1  01:43

Oh, wow.

‍

Host 2  01:43

Yeah, it's, it's been rough.

‍

Host 1  01:46

Yeah, I can see why they'd be worried. I mean, imagine trying to, you know, keep your business afloat with these tiny margins.

‍

Host 2  01:52

Yeah. 

‍

Host 1  01:52

And then, all of a sudden, bam, you got this, like, 25% increase in your costs.

‍

Host 2  01:56

Right.

‍

Host 1  01:57

I mean, that's the reality these trucking companies are looking at.

‍

Host 2  01:59

Yeah.

‍

Host 1  01:59

You know, job losses, companies closing down, and, ultimately, just just fewer trucks on the road to get those goods delivered.

‍

Host 2  02:07

And here's another thing: the CTA did a survey.

‍

Host 1  02:10

Okay. 

‍

Host 2  02:10

Businesses are already seeing order cancelations between 20% and 80% and, get this, this was before the tariffs even kicked in. 

‍

Host 1  02:18

Wow, that's that's pretty wild. I mean, it seems like, you know, customers are kind of freaking out a bit, right? You know, I mean canceling orders left and right, because they're, they're worried about prices skyrocketing, or, like, you know, major disruptions in the supply chain.

‍

Host 2  02:31

Right. Yeah. 

‍

Host 1  02:32

It's like a, like a domino effect, you know?

‍

Host 2  02:34

Exactly. And it's not just the big, the big trucking companies feeling the pressure. The CTA is saying, even private fleets are getting nervous.

‍

Host 1  02:41

Oh, really? So, for those who who may not know, like, what's a private fleet?

‍

Host 2  02:46

Yeah, good point.

‍

Host 1  02:47

You know, like, you think of a company like Walmart or Amazon, right? They own and run their own trucks to move their own stuff; they're basically cutting out the middle man.

‍

Host 2  02:54

Okay, okay, I got it. So even though they're not directly paying for outside trucking, they're still exposed to these rising costs.

‍

Host 1  03:02

Exactly. If the, you know, the companies they're buying their stuff from are paying more to move it because of these tariffs, that cost is eventually going to land on them.

‍

Host 2  03:11

Yeah.

‍

Host 1  03:11

And who do you think ends up paying the bill?

‍

Host 2  03:12

Yeah, that's true. So it's us. And that actually reminds me of Mike Millian from the Private Motor Truck Council of Canada. He basically put out this, this, like stark warning.

‍

Host 1  03:23

Oh no.

‍

Host 2  03:24

Saying these tariffs, they're basically going to make lives more expensive.

‍

Host 1  03:29

He's right. He's totally right. I mean, when trucking costs go up because of tariffs, well, guess what? The price of the stuff they're moving goes up too, right?

‍

Host 2  03:37

Yeah.

‍

Host 1  03:37

It's basic economics. And you know, those extra costs, they trickle down until they hit you right in the face at the store.

‍

Host 2  03:44

Ouch. So it's, so, it's like a chain reaction, right?

‍

Host 1  03:48

It is.

‍

Host 2  03:49

So, okay, what's the Canadian government doing about all this? The CTA seems to havea whole bunch of things they want, right?

‍

Host 1  03:55

Yeah, they're, they're asking the government to step in with some help, like, you know, get rid of the carbon tax, lower the diesel tax, give the trucking industry some targeted tax relief, and they want a bigger meal allowance for drivers, too.

‍

Host 2  04:08

Oh, okay.

‍

Host 1  04:09

And they want to make sure any help they offer gets to, you know, all the drivers, whether they're on payroll or independent contractors.

‍

Host 2  04:16

That's a pretty comprehensive plan. It sounds like they're trying to, you know, tackle this from all sides.

‍

Host 1  04:23

Yeah, they are. Each of those things they're asking for is meant to take some of the financial pressure off the industry.

‍

Host 2  04:28

Okay.

‍

Host 1  04:29

Like, you know, get rid of the carbon tax and lower in the diesel tax.

‍

Host 2  04:32

Yeah? 

‍

Host 1  04:33

That would save them a ton on fuel right away.

‍

Host 2  04:36

Right.

‍

Host 1  04:36

Which, you know, that's one of their biggest expenses, right?

‍

Host 2  04:38

For sure. 

‍

Host 1  04:39

And bumping up the meal allowance, that makes sense, too. You know, drivers are facing less demand.

‍

Host 2  04:44

Right. 

‍

Host 1  04:45

Might be stuck on the road longer, eating out more often.

‍

Host 2  04:47

Makes sense. 

‍

Host 1  04:48

So they need that extra help.

‍

Host 2  04:50

And it seems like they're not just looking for quick fixes either, right? The CTA is also pushing for some long-term changes, urging the government to focus on improving productivity and efficiency in the trucking industry.

‍

Host 1  05:02

Yeah, that's it. That's a key point. I mean, when the trucking industry runs smoothly, everyone benefits. Think about it. Like, if trucks can move stuff faster and cheaper, that means lower prices for you.

‍

Host 2  05:15

Yeah.

‍

Host 1  05:15

Maybe even faster deliveries.

‍

Why some Americans dislike the U.S. tariffs on Canada and Mexico

‍

Host 2  05:17

Now, this whole situation isn't as simple as it might seem. I mean, while Canadian trucking is definitely feeling the heat, American Trucking Associations, they're kind of singing a similar tune, right?

‍

Host 1  05:29

Oh, that's interesting.

‍

Host 2  05:30

Yeah, they're not exactly thrilled about these tariffs either.

‍

Host 1  05:32

Oh, really? They're not rooting for them, even though they're aimed at Canada and Mexico?

‍

Host 2  05:36

Nope. In fact, the American Trucking Associations, the ATA, they're actually publicly against these tariffs.

‍

Host 1  05:43

Wow. Okay. So, the ATA, an American group, they're opposed to these tariffs. What's the logic there?

‍

Host 2  05:50

Yeah, well, their biggest concern is that these tariffs will kind of like, you know, undo all the good that came from the USMCA.

‍

Host 1  05:56

Okay.

‍

Host 2  05:57

You know, that updated trade deal between the U.S., Mexico and Canada.

‍

Host 1  06:00

Gotcha.

‍

Host 2  06:01

So, basically, the ATA saying these tariffs go against everything the USMCA was supposed to do, which was to make trade between our countries, you know, smoother and more efficient.

‍

Host 1  06:10

Right. Like, why make a deal if you're just going to throw up roadblocks?

‍

Host 2  06:13

Exactly. They're saying it's like hitting the brakes just as the engine was starting to run properly.

‍

Host 1  06:18

Okay.

‍

Host 2  06:19

Now, they've also brought up this, this interesting point about nearshoring and how it's becoming more and more popular.

‍

Host 1  06:25

Nearshoring?

‍

Host 2  06:25

Yeah, so what is that exactly, and why does it matter in this situation?

‍

Host 1  06:30

So, nearshoring is basically bringing production closer to home.

‍

Host 2  06:34

Okay. 

‍

Host 1  06:34

Instead of relying on factories, you know, way overseas, companies are choosing to make stuff in places like Mexico and Canada.

‍

Host 2  06:41

Right. 

‍

Host 1  06:42

Which makes sense, you know? It cuts down on shipping costs, gets products to customers faster.

‍

Host 2  06:47

Yeah.

‍

Host 1  06:48

And it gives companies more flexibility to adapt to changes, you know?

‍

Host 2  06:52

The ATA claims that 100,000 truckers, who handle 85% of trade with Mexico and 67% with Canada, they're all going to be directly hit by these tariffs.

‍

Host 1  07:03

A hundred thousand, that's a huge number. It really shows how, you know, how connected our economies are in North America.

‍

Host 2  07:09

Right.

‍

Host 1  07:09

Like, this isn't just going to hurt a few businesses, it's going to have this, like, ripple effectacross the entire supply chain. 

‍

Host 2  07:16

And then there's the financial hit the ATA is warning about. They're saying truck prices could jump up by like, $35,000, which is a, you know, that's a big deal!

‍

Host 1  07:27

Yeah, for sure. It's like, you know, new trucks, fuel, parts, everything's going to get more expensive because these tariffs. 

‍

Host 2  07:32

Right.

‍

Host 1  07:33

It's going to squeeze the trucking companies.

‍

Host 2  07:34

Yeah.

‍

Host 1  07:35

Make it harder for them to stay in business.

‍

Host 2  07:36

Okay, so, just to recap, both Canadian and American trucking groups, they're both against these tariffs. They're predicting all sorts of bad stuff.

‍

Host 1  07:45

Yeah.

‍

Host 2  07:45

Job losses, higher costs for companies, and, of course, higher prices for us.

‍

Host 1  07:50

It's not looking good. Seems like everyone's bracing for impact, you know, except maybe the folks who put these tariffs in place in the first place.

‍

What are the economic policy alternatives to tariffs?

‍

Host 2  07:59

Right, yeah, exactly. It definitely makes you wonder, like, if tariffs are such a bad solution, what are the alternatives?

‍

Host 1  08:06

Yeah, good question.

‍

Host 2  08:07

And what other unintended consequences might we see, you know, beyond the trucking industry?

‍

Host 1  08:14

Those are great questions, and we're going to get into those right after this. Yeah, you know, it's important to remember that governments use tariffs as a way to protect their own industries, or to, you know, try and level the playing field when it comes to trade between countries.

‍

Host 2  08:29

Yeah.

‍

Host 1  08:30

But, as we're seeing here, tariffs can have some pretty nasty side effects that no one really saw coming.

‍

Host 2  08:35

Yeah, that's pretty clear. So, if tariffs aren't the answer, then what are some other things the government could do?

‍

Host 1  08:44

Right. 

‍

How U.S. tariffs on Canada and Mexico will impact American consumers

‍

Host 2  08:44

I mean, how could they achieve their goals without triggering all these negative consequences we've been talking about?

‍

Host 1  08:50

That's the big question. And there's no easy solution, really. It all depends on what the government's actually trying to fix.

‍

Host 2  08:57

So it's more like you need a tailored approach, right?

‍

Host 1  09:01

Yeah.

‍

Host 2  09:01

Not just a one size fits all kind of thing.

‍

Host 1  09:03

Exactly. I mean, some things they could try, you know, maybe targeted investments in certain industries here at home.

‍

Host 2  09:08

Okay.

‍

Host 1  09:08

Or maybe working out trade deals that are a little fairer for everyone, or even, you know, stricter rules on some imports.

‍

Host 2  09:15

Yeah, those options definitely sound more thought out than just, you know, slapping on a tariff.

‍

Host 1  09:21

Right.

‍

Host 2  09:21

But I'm guessing they come with their own set of problems, right?

‍

Host 1  09:24

Oh, yeah, definitely, right. Every decision has a, you know, flip side; for example, investing in domestic industries, that's going to cost a lot of money.

‍

Host 2  09:34

Yeah,.

‍

Host 1  09:34

Could mean higher taxes.

‍

Host 2  09:36

Right.

‍

Host 1  09:36

Or cuts in other programs. And trade deals, those are a nightmare to work out, you know?

‍

Host 2  09:41

Yeah,.

‍

Host 1  09:42

Takes forever, and there's no guarantee it'll work out in the end. And, then, stricter regulations, I mean, sometimes you need them.

‍

Host 2  09:48

Right.

‍

Host 1  09:48

But they can also, you know, slow things down, create a lot of red tape.

‍

Host 2  09:51

So it sounds like finding the right answer means really understanding what might happen, right?

‍

Host 1  09:56

Yeah.

‍

Host 2  09:56

Weighing all the good and bad of each option.

‍

Host 1  09:59

Exactly. And remember, these unintended consequences of tariffs, they don't just affect the trucking industry, right? Well, one likely scenario is that, you know, as prices go up because of the tariffs, people start spending less.

‍

Host 2  10:05

Right. You mentioned that earlier. So what are some ways these tariffs could, you know, spill over into other parts of the economy? Right.

‍

Host 1  10:20

And that could have a ripple effect on all sorts of industries, retail, manufacturing, even tourism.

‍

Host 2  10:26

Yeah, makes sense. I mean, if you're, if you're paying more for the basics, you're going tohave less money to spend on other stuff.

‍

Host 1  10:31

Exactly. And then there's the whole issue of, you know, how this affects relationships between countries.

‍

Host 2  10:36

Right.

‍

Host 1  10:37

Putting tariffs on your trading partners, that can create tension

‍

Host 2  10:40

Yeah,.

‍

Host 1  10:40

Make it harder to work together on other important stuff, like, you know, security, climate change, even pandemic response.

‍

Host 2  10:47

So these tariffs could actually, like, snowball into a much bigger issue, right?

‍

Host 1  10:51

They could, and that's why it's so important to talk about this stuff.

‍

Host 2  10:55

Yeah.

‍

Host 1  10:55

To understand how trade policy works.

‍

Host 2  10:57

Right.

‍

Host 1  10:58

And to really think about what might happen when you do something like imposing tariffs.

‍

Host 2  11:03

It's been, it's been really interesting to dig into this.

‍

Host 1  11:07

Yeah, me too.

‍

Host 2  11:07

It's amazing how something that seems so simple, like adding a tariff, can have such, you know, huge and unpredictable consequences.

‍

Host 1  11:17

It really shows how connected our world is, right?

‍

Host 2  11:19

Yeah.

‍

Host 1  11:19

A decision made in one country can have a huge impact on other countries.

‍

Host 2  11:23

Yeah.

‍

Host 1  11:24

And on whole industries. It's a constant reminder that we need to, you know, think globally and act strategically.

‍

Host 2  11:30

Right.

‍

Host 1  11:31

To make sure everyone has a good future.

‍

Host 2  11:32

Well said. So to wrap up this part of our deep dive, what are some of the, you know, the main takeaways you hope our listener walks away with after exploring the world of trucking and tariffs?

‍

Host 1  11:45

I think the biggest takeaway is that tariffs are—They're rarely a simple solution.

‍

Host 2  11:52

Right.

‍

Host 1  11:52

They might seem like a quick fix, but they usually come with a lot of baggage that you can't just ignore.

‍

Host 2  11:57

Okay.

‍

Host 1  11:57

We've seen how these tariffs on Canadian and Mexican goods, they could really hurt the trucking industry.

‍

Host 2  12:02

Yeah.

‍

Host 1  12:02

Both here and in those countries—could mean job losses, higher costs for companies, and, ultimately, you know, higher prices for consumers. 

‍

Host 2  12:10

It's like that domino effect, right? It's one thing leads to another, and then we're all paying more at the store.

‍

Host 1  12:15

Exactly. And beyond just the immediate economic impact, there's the long-term effects on trade relations, diplomacy, even consumer behavior.

‍

Host 2  12:25

Speaking of consumer behavior, that's an interesting point. What do you think? If these tariffs stick around for a while, how will they change how people shop and what they buy?

‍

Host 1  12:36

That's a great question, and I'm sure a lot of lot of economists are trying to figure that out right now.

‍

Host 2  12:41

Yeah.

‍

Host 1  12:42

We might see people becoming more, you know, more sensitive to price.

‍

Host 2  12:45

Okay.

‍

Host 1  12:46

Maybe choosing cheaper brands or even cutting back on certain things altogether.

‍

Host 2  12:50

So maybe we'll see people buying more stuff made here, even if it's a little more expensive.

‍

Host 1  12:54

It's possible. We might also see more people shopping online, yeah, trying to find better deals, avoid those higher prices in stores.

‍

Host 2  13:01

That's an interesting point. The online market could get even more competitive as people hunt for bargains.

‍

Host 1  13:07

Yeah, it's always changing, and these tariffs could really shake things up, both for consumers and for retailers.

‍

Host 2  13:12

This has been a really insightful deep dive.

‍

Host 1  13:16

Agreed.

‍

Host 2  13:16

We've covered a lot, from the immediate worries of the trucking industry to the bigger, you know, economic and global implications of these tariffs.

‍

Host 1  13:26

Yeah.

‍

Host 2  13:26

But before we wrap things up, I want to leave our listener with something to think about.

‍

Host 1  13:26

Okay, sounds good.

‍

Host 2  13:27

So we talked about, you know, how these tariffs might mess with businesses and the economy as a whole. But let's, let's bring it home a bit like, let's get personal for a second. If these tariffs stick around for a while, how do you think they might change, like your own shopping habits, what would you do differently at the checkout?

‍

Host 1  13:50

It's a really good question. We don't always stop and think about how much you know global stuff actually affects our everyday choices.

‍

Host 2  13:59

Right.

‍

Host 1  13:59

Even something as basic as, like, buying groceries.

‍

Host 2  14:02

Exactly. Yeah, we might see people switching brands, maybe looking for more local stuff, or even, you know, cooking at home more instead of eating out.

‍

Host 1  14:10

Yeah.

‍

Host 2  14:11

It'll be interesting to see how it all plays out.

‍

Host 1  14:13

Definitely. And this whole situation really shows how important it is to, you know, stay informed.

‍

Host 2  14:19

Yeah.

‍

Host 1  14:19

Understand how these policy decisions can have a ripple effect. It's not just about politics, right? It's about how those decisions affect the things we buy, the prices we pay, and basically all the choices we make every day.

‍

Host 2  14:31

Well, said, this deep dive has been quite a journey, and I hope our listener has a new way of looking at, you know, trade, tariffs and how things happening far away can actually hit us right here at home.

‍

Host 1  14:45

Absolutely.

‍

Host 2  14:45

Yeah. It's a reminder that we're all connected and our choices, whether it's personal choices or, you know, choices we make as a society, they all have consequences.

‍

Host 1  14:55

Yeah, for sure.

‍

Host 2  14:55

So, until next time, keep an eye out for those connections, you know, whether you're at the store or reading the news, you never know what you might find.

‍

Host 1  15:03

That's true.

‍

Host 2  15:05

Thanks for joining us for this deep dive.

‍

Host 1  15:07

You got it.

‍

Ad Read  15:08

For more insights like these, don't forget to subscribe to Logistics Pulse on YouTube, Spotify, or wherever you get your podcasts.