Tariffs. Are they happening? Are they not happening? Who has to pay the tariffs and who doesn’t? Are they on pause? For how long?
Tariffs are murky. Do you remember Magic 8 Balls? As a kid, you’d ask some super serious question (Does my crush like me?), and you’d count on it to decide your fate. Half the time, it would give you an answer like, “Reply hazy try again” or “Cannot predict now.”
Yeah, tariffs kind of feel like that.
They might sound like something that only matters to big companies and politicians — but they can have a direct impact on everyone. As a truck driver, you may see your work, your pay, and how often your wheels are turning affected.
Understanding what a tariff is, who pays for them, and how they affect transportation on the whole and you as a truck driver should be at the top of your list right now.
As always, you can count on us here at Anderson Trucking Service (ATS) to be honest and unbiased. A big part of that means telling you we aren’t sure exactly what’s going to happen. But we will keep you updated as we know more, and we’ll always do our best to answer your questions.
So, let’s dig in! Let’s talk tariffs!
A tariff is a tax a nation charges on goods coming into the country from somewhere else. In this case, we’re talking about the taxes the U.S. government is placing on goods coming into the country from other countries.
Think of it like a fee that gets slapped on certain products when they cross the border — just for the fact that they’re being imported. It’s kind of like a sales tax, except it’s charged at the point of entry instead of the checkout counter.
Tariffs can be added to certain products (like steel, electronics, or solar panels) or to everything coming from a specific country.
They’re usually based on the value of the product — for example, 10 percent of the cost — but sometimes, it’s a flat fee based on how much is being imported.
Technically, the importing company pays the tariff. But that’s not where the story ends.
Most of the time, that company doesn’t want to lose money — so they pass the cost on to the next person in line. That could be the wholesaler, the retailer, and eventually the customer buying the product.
Here’s a simple example:
Let’s say a vehicle is imported from Canada into the U.S. for $25,000. In turn, the dealership sells it for $30,000 to make $5,000 in profit.
Then the government adds a 15 percent tariff on all goods from Canada. That’s an extra $3,750 in tax. Now the company’s profit on the vehicle is only $1,250 — and they don’t like that. After all, no one likes having their profit margins cut, so you can’t really blame them.
As a result, they bump the price of the vehicle up by another $3,750 — making the customer (you) pay the extra fee the tariffs caused. You’ll end up paying $33,750 for the vehicle.
The consumer pays more and the company keeps its profits.
And that’s how tariffs affect everyone — even if they don’t realize it.
You might be wondering why governments are implementing tariffs right now, and there are a few reasons, including to:
Sometimes, it works — especially when it helps U.S. companies compete on a more level playing field.
But other times, it backfires.
If a tariff is added to something we can’t make easily here — like certain raw materials or machine parts — it can drive up prices without really helping U.S. companies. And when that happens, businesses pay more, customers pay more, and the economy can slow down.
According to S&P Global, the tariffs will affect trucking imports and exports as well as manufacturing, pricing, profitability, and volume.
In a nutshell: Tariffs have the potential to shake up the whole supply chain — and that includes you.
Here’s how*:
*A reminder that these are all could-be situations. We don’t know what will happen yet. It’s a wait-and-see game.
When tariffs are announced, some companies rush to bring in extra products before the new costs hit. That’s called “frontloading.” It creates a short-term spike in freight demand — which might mean more loads and better rates for a little while.
But once the warehouses fill up, things slow down. Loads can dry up, and it might take a while before things even out again.
In fact, we already saw this happen when the Trump Administration was planning to launch its first round of tariffs. There was a freight push as shippers faced uncertainty over the tariffs. After that increase in the movement of freight, we dipped back to the previous level of demand.
Some shippers are even pulling back their shipments entirely out of fear of the unknown.
Tariffs raise the price of goods, and companies have to cut costs somewhere. Sometimes, they try to save money on transportation — which can mean fewer shipments, tighter profit margins for carriers, and lower rates.
As the truck driver moving those goods, what does it mean for you? Lower-paying loads means a smaller paycheck, as do fewer loads.
It’s much like a domino effect. If there are fewer loads and carriers are seeing tighter profit margins, they can run into financial trouble. Drivers could see lower rates or even delayed paychecks if the carrier is really struggling financially.
Now, it’s not all bad. If companies decide to move manufacturing from China to the U.S. (a long-term goal of the tariffs), that changes where freight comes from and goes to. It might mean new lanes open up while others slow down or disappear.
An example of this would be if companies moved their manufacturing from Mexico into Texas. Freight could flow in, and drivers will see an immediate increase in demand.
At the same time, small industries that already existed in the U.S. will likely see demand rise as consumers shift their spending to tariff-free goods.
Keep in mind: Industries based solely in Mexico, Canada, or elsewhere can’t bring their business into the U.S. overnight. They’ll need time to adjust, and that timeline could take years.
On the other hand, this shift in trade routes could be problematic to start. Let’s say carriers that were regularly moving freight in and out of Mexico stop or significantly reduce hauling cross-border freight.
As that business dries up, they’ll start taking capacity from carriers that were never going into Mexico to begin with. That means less freight to go around and fewer loads for truck drivers to haul.
Hypothetically, let’s say that companies do move their manufacturing from China, Mexico, or elsewhere to the U.S. and there’s a freight increase. If there’s more freight moving all at once, it can become harder for shippers to find trailers, push up spot market rates, and stress warehouse operations — all of which trickles down to truckers.
So while shippers may be overwhelmed, truck drivers like you will be in higher demand. Much like during the pandemic, shippers will be willing to pay whatever they can just to get their freight moved. As a result, drivers’ paychecks can increase significantly.
We all know just how expensive truck parts have gotten, and unfortunately if the tariffs take effect, they won’t be getting any cheaper. During production, some parts cross borders multiple times…and tariffs will have to be paid on the goods each time they cross the border.
For example, many Class 8 truck engines are produced in the U.S. (with some parts coming from other areas of the world) but are shipped to Canada and Mexico for installation. Already costly semi-trucks can get costlier.
According to S&P Global, even if the tariffs are only in place for a few weeks, the impact on price and profitability could be significant. Some estimates say that the price of a new truck could rise as much as $35,000.
The tariff landscape is changing daily, so it’s difficult to give a clear answer on how you should react. Until we know what tariffs are going to stick, it’s hard to know what decision to make with your trucking business.
You can’t control tariffs — but you can stay ready for how they shake up the market.
At the end of the day, tariffs may feel out of your hands — and that’s because, for the most part, they are. You can’t stop them from coming, and you can’t always predict how they’ll play out. But here’s what you can do: stay informed, stay flexible, and keep moving forward.
We know the uncertainty can be frustrating. Rates might dip, freight might slow, and parts might cost more. But history shows us that the drivers who watch the market, stay open to new lanes, and work with a reliable carrier are the ones who keep earning — even when the road gets bumpy.
And you’re not in this alone. At ATS, we’re committed to helping you navigate these changes with clear, honest updates and practical strategies. When the industry shifts, we’ll be here to help you adjust.
Stay updated on the industry by subscribing to our Learning Center and regularly reviewing reputable sites like FreightWaves.