Leverage PLM Inventory to Avoid Tariff Exposure

Tariffs are expected to increase costs by 16 to18% on dry van and refrigerated trailers, adding significant financial pressure on fleet buyers and dealers.  Due to these projected cost hikes, dealers are hesitant to stock refrigerated trailers, fearing they may be forced to sell at a loss if tariffs are later lifted.  The uncertainty surrounding EPA regulations and tariff policies has led to delayed purchases of refrigerated trailers, potentially creating supply chain shortages when demand resurges.  (Source Commercial Carrier Journal)

Today the Supreme Court is fast-tracking a case in hear arguments that challenges Donald Trump’s use of sweeping global tariffs, which were central to his administration’s economic strategy. The case questions whether Trump overstepped his authority by invoking national security to justify the tariffs without congressional approval. A ruling could significantly impact presidential powers over trade and reshape future economic policy decisions. (Source CNN)

Class 8 truck orders in August fell 14% year-over-year, reflecting ongoing weakness in freight demand and growing cost pressures from newly implemented tariffs. The August 7 tariff hikes have increased costs on vehicles, parts, and key inputs, while uncertainty around Section 232 tariffs on steel, aluminum, and copper adds further risk to fleet investment decisions. As a result, fleets are delaying new purchases, extending truck/trailer lifespans, and incurring higher maintenance costs that are contributing to a sluggish recovery in freight rates and restrained capacity growth. (Source – Commercial Carrier Journal)

The expansion of 50% tariffs on imported steel and aluminum to over 400 product categories—including transportation parts, EV components, and trailer materials—is expected to significantly increase the cost of fleet acquisition for trucking companies. These tariffs will raise prices on key components used in trailer manufacturing and maintenance, such as crossmembers, refrigeration units, and structural reinforcements. As a result, fleets may face higher upfront capital expenditures and ongoing maintenance costs, potentially impacting acquisition cost, asset lifecycle planning, and overall operational margins. (Source – FreightWaves)

The Trump Administration’s August 1^st deadline is today with the newly imposed tariffs reaching up to 41% on imports from dozens of countries prompted mixed reactions, with some nations expressing relief after negotiating lower rates, while others missed the deadline and now face steep penalties. The announcement triggered a sharp market response, with U.S. stocks and global benchmarks falling, and the dollar weakening against the yen. Canada was hit with a 35% tariff due to alleged non-cooperation on drug enforcement, while China and Mexico received extensions to continue negotiations.  (AP News)

The Trump Administration has finalized a series of trade deals with major U.S. trading partners including the European Union, Japan, and the United Kingdom just ahead of an August 1 tariff deadline. Countries like Brazil, India, Canada, and Mexico face steep tariff hikes if they fail to reach agreements, with no further extensions planned. Tariffs on all steel and aluminum imports to 50% as of June 2025, is expected to continue on all steel and aluminum that will significantly impact the cost of refrigerated trailers. (USA Today)

The Trump Administration has announced a 30% tariff on imports from the European Union and Mexico, set to take effect on August 1. This move has prompted the EU to consider retaliatory measures if a trade agreement isn’t reached by then. The potential for a trade war has raised concerns among European leaders, who are urging for intensified negotiations to avoid further economic conflict.  The tariffs will raise the cost of imported materials and components used in manufacturing refrigerated trailers, leading to supply chain disruptions and higher production costs.  (Sources – Yahoo Finance)

The Trump Administration will plan to increase tariffs on goods from BRICS countries by 10%, effective August 1st. Additionally, the administration announced a 25% tariff on goods from Japan and South Korea, as part of his ongoing pressure campaign to secure new trade agreements. The move is part of a broader strategy to finalize several trade agreements and address the U.S. trade deficit, with the administration focusing on 18 key trading partners that account for 95% of the deficit. (Reuters & MSN) 

The American Transportation Research Institute (ATRI) has reported that truck and trailer payments have soared, increasing by 8.3% to a record-high of $0.39 per mile. This surge in costs is particularly burdensome for the trucking industry, which is already grappling with a challenging freight market and the impact of tariffs. Despite lower fuel prices, the rise in trailer payments, along with driver benefits costs, has significantly impacted overall operational expenses (Commercial Carrier Journal) 

The Trump administration’s new tariff warning could significantly impact the temperature-controlled industry by increasing the costs for goods, leading to higher operating expenses. Businesses in this sector may face challenges in maintaining competitive pricing and profitability due to the rise in tariffs. With the July 9 deadline looming, the uncertainty surrounding the trade negotiations could disrupt supply chains, affecting the availability and timely delivery of temperature-sensitive products, as tariffs could revert to their original, higher levels if no agreements are reached. (MSN) 

Tariffs on imported steel, aluminum, and parts are driving up costs for fleet operators, leading them to reevaluate their sourcing strategies and vehicle acquisition plans. Leasing is a financing option is highlighted as a viable solution to absorb costs and preserve working capital amidst these economic changes. Fleet operators are advised to engage suppliers and remain flexible in their practices to mitigate the impact of tariffs and maintain operational efficiency (Commercial Carrier Journal) 

Japanese Prime Minister Ishiba said after the G7 summit in Canada that Japan and the U.S. have yet to forge a full tariff agreement, with key disagreements still unresolved in particularly over the 25% tariff on Japanese auto imports. The tariffs have already hit Japan’s economy hard, contributing to the country’s first export decline in eight months and dealing a multi‑billion yen blow to automakers like Toyota and Honda. (USA Today & Reuters)

Following two days of talks in London, U.S. and China negotiators reached a framework agreement to restore a Geneva trade truce. This includes China easing export restrictions on rare-earth minerals and magnets, and the U.S. rolling back some of its export curbs on semiconductors and aerospace goods, with both sides calling it a “balanced” exchange. The agreement builds on the Geneva consensus reached earlier (May 12), aiming to suspend punitive tariffs (set around 30% U.S., 10% China) and resolve export control disputes.  The agreement is now pending approval by President Trump and President Xi and have until August 10, 2025 to finalize a comprehensive agreement. (USA Today & Reuters)

The Trump Administration urged a U.S. Appeals Court to uphold tariffs imposed, warning that lifting them could lead to severe economic and national security consequences. Since the tariffs were introduced in April, the government reported raising $68.9 billion in tariff and excise tax revenue during the first five months of 2025, a 78% year-over-year surge that provides a boost to government income. However, this fiscal gain comes with a tradeoff as economic forecasters warn that the tariffs could stoke inflation that would drive up costs for businesses while slowing overall growth.  (Yahoo Finance & NPR)

President Trump implemented a sharp increase in steel and aluminum tariffs from 25% to 50%. This is expected to significantly increase production costs for U.S. manufacturers of transportation equipment. The tariff shock is disrupting supply chains, prompting companies to reassess sourcing strategies and hinder long-term investment planning. (AP News)

A U.S. federal court has blocked former President Donald Trump’s sweeping tariffs, ruling that he exceeded his authority under the International Emergency Economic Powers Act. The court determined that the economic concerns cited did not meet the legal threshold of a national emergency, thereby invalidating the tariffs. In response, the Trump administration plans to appeal the decision and is exploring alternative legal avenues, such as invoking Sections 212, 301, or 122 of various trade laws, to reinstate similar tariffs. (Politico)

Although tariffs have increased costs and dampened freight demand in the U.S. trucking industry, there are also signs of potential recovery. For instance, a 90-day reduction in tariffs between the U.S. and China has led to a 50% week-over-week increase in U.S.-China bookings, suggesting a possible boost in freight volumes during the back-to-school season.  Additionally, the U.S. trucking sector, which has been facing a nearly three-year-long slowdown exacerbated by tariffs, may benefit from importers accelerating shipments ahead of peak shopping periods.  (FleetOwner)

The 90 day U.S. / China tariff truce is expected to trigger a surge in shipping volumes as importers rush to take advantage of reduced tariffs, causing freight rates and especially for ocean and trucking to rise sharply. This sudden increase in demand will strain transportation capacity and infrastructure, leading to logistical challenges, particularly for smaller shippers who may be deprioritized. Larger importers will benefit most from this window, while companies are urged to act quickly to avoid delays and higher costs amid tightening freight markets.  (Freightwaves)

Tariffs have recently spurred short-term job growth in commercial trucking, with the sector adding 1,400 jobs in April 2025, marking the fourth increase in six months and totaling 10,000 new positions since October 2024. This uptick is largely attributed to businesses engaging in “proactive safety stocking,” accelerating inventory shipments. However, experts caution that this surge may be temporary, as ongoing trade uncertainties from the tariffs could reverse these gains and negatively impact the commercial trucking industry. (Commercial Carrier Journal)

Tariffs have led to a 45% drop in container bookings from China and a one-third decline in vessel arrivals at the Port of Los Angeles, prompting warnings from retailers about potential empty shelves and rising consumer prices.  The trucking industry is experiencing reduced demand as retailers delay shipments and rely on existing inventory, with economists predicting decreased freight volumes and increased operational costs due to higher prices for imported commercial truck and trailer parts.  (ABC News) 

Port of Philadelphia handles 20% of the nation’s food imports of 5.1 billion pounds of fresh fruit in 2023, valued at $3.1 billion. Despite substantial investments in infrastructure, including dredging the Delaware River and expanding cold storage facilities, the port’s growth faces challenges due to U.S. trade tariffs.  U.S. transportation companies may see a decline in freight and logistics activity at the Port of Philadelphia, potentially leading to job losses and reduced revenue in the supply chain sector. (Fresh Plaza)

Following President Trump’s announcement to reduce the 145% tariff on Chinese imports after meetings with CEOs from Walmart, Target, and Home Depot, businesses are cautiously optimistic but remain strategic in their planning. While the tariff reduction offers short-term relief, cold chain companies are maintaining contingency plans to navigate ongoing trade uncertainties and potential retaliatory measures from China.  (Supermarket News)

U.S. financial markets experienced significant volatility following President’s renewed public criticism of Federal Reserve Chair and urged immediate interest rate cuts, despite ongoing inflation concerns. This rhetoric intensified investor anxiety, leading to substantial market declines today. The market’s reaction underscores concerns about the Federal Reserve’s independence and the potential economic implications of the administration’s trade policies. (CNN)

Federal Reserve Chair warned that the President’s tariffs are likely to lead to higher inflation and increased unemployment. His remarks contributed to a significant market downturn, with major indices falling sharply as investors reacted to concerns about potential stagflation.  The tariffs have led to cost increase on refrigerated trailers and is complicating long-term planning for fleets. (CNN)

New tariffs on semiconductors and electronics—especially those sourced from China—could significantly affect refrigerated trailers, which rely on electronic control units (ECUs), temperature monitoring systems, GPS tracking, and other sensor-based tech.  If tariffs increase component costs, manufacturers will raise prices on new trailers and or delay production lines. (Reuters)

The tariffs on Chinese imports, which have increased to 104%, are expected to significantly impact the U.S. economy. The S&P 500 has lost nearly $6 trillion in value since the tariffs were announced, marking the deepest four-day loss since the index’s creation. (AP News)

Tariffs have decreased new equipment orders and increased material costs, harming U.S. manufacturing competitiveness. Trucking demand and capacity is back to pre-COVID levels, while the number of carriers is up 40%. (Fleet Owner)

The tariffs will significantly raise the cost of imported goods, with a universal 10% tariff and additional country-specific tariffs, such as 34% on Chinese imports. This increase in costs is expected to affect importers, distributors, retailers, and consumers, leading to higher prices for everyday food and beverage items. (Forbes)

The new tariffs are expected to significantly increase costs for the food industry, with transportation expenses rising by up to 15%. This increase in costs will likely lead to higher prices for food products, affecting both retailers and consumers. (Fleet Owner)

In February, U.S. trailer orders dropped by 17% from January, totaling just under 18,200 units. This decline reflects a 13% decrease compared to February 2024, highlighting the significant impact of tariff ambiguity on the transportation industry (ACT)

The new tariffs could increase transportation costs by up to 15%, significantly impacting the logistics and trucking sectors. Additionally, these tariffs are expected to cause a 10% rise in operational expenses for transportation companies (AP News)