“As the trucking industry recovers from a years-long freight recession marked by low freight volumes, depressed rates, and rising operational costs, we have concern that tariffs could decrease freight volumes and increase costs for motor carriers at a time when the industry is just beginning to recover,” said Chris Spear, American Trucking Associations president and CEO. “A 25% tariff levied on Mexico could see the price of a new tractor increase by as much as $35,000. That is cost-prohibitive for many small carriers, and for larger fleets, it would add tens of millions of dollars in annual operating costs.”
Spear noted that the United States-Mexico-Canada Agreement was a major achievement of President Trump’s first administration.
“The American Trucking Associations worked hand in glove with all three countries to reach this historic deal, and we look forward to doing so again during the USMCA review,” Spear said.
Agriculture Unfairly Targeted
Michigan Department of Agriculture and Rural Development (MDARD) Director Tim Boring is concerned about the affect tariffs could have.
“We’ve had extensive conversations with farmers and other stakeholders, and I echo their concerns about these imposed tariffs,” Boring said. “While there are still a lot of unknowns, it’s important to remember two things: Canada and Mexico are our biggest export destinations, and the last time this happened retaliatory tariffs specifically targeted agriculture. We have to expect tariffs will immediately threaten agriculture jobs, our rural economies and ultimately what it costs to put food on the table.”
Jobs at Risk
Michigan Governor Gretchen Whitmer has also weighed on Trump tariffs. Whitmer noted tariffs will raise costs on goods and services critical to Michiganders, like groceries, home heating, and cars, and put more than a million Michigan jobs at risk.
“Michiganders are already struggling with high costs—the last thing they need is for those costs to increase even more,” Whitmer said. “A 25 percent tariff will hurt American auto workers and consumers, raise prices on cars, groceries, and energy for working families and put countless jobs at risk. Trump’s middle-class tax hike will cripple our economy and hit working-class, blue-collar families especially hard.”
Trucking Industry Could Suffer
“Trucks move 85% of goods that cross our southern border and 67% of goods that cross our northern border, supporting hundreds of thousands of trucking jobs in the U.S. The trucking industry understands the crises motivating these tariff proposals, which is why we have been a leader in efforts to fight drug and human trafficking.” Spear said. “We firmly support policies that will secure our borders and protect legitimate trade, but we also recognize the unintended consequences that substantial tariffs could have over the long-term, including higher consumer costs on the wide range of goods that cross our borders by truck, including food, automobiles, televisions, computers, furniture, and other key manufacturing inputs.”
Middle Class Families to be Hit Hardest
“Because companies pass tariff costs on to the consumers, Trump’s middle-class tax hike will mean Michigan families pay more to heat their homes as they face below freezing temperatures, fill their gas tanks, and get affordable housing at a time when inflation is already high,” Whitmer said. “It will harm our auto industry, driving up the cost of cars and slowing production lines.”
Whitmer added that she is proud of the progress Michigan has made to bring supply chains home, grow auto manufacturing, and ensure Michigan’s talented workers build the future of cars and components.
“I’ll be glad to work with him, and anyone, to protect Michigan’s auto manufacturing, lower costs, and fight for Michigan’s working families,” Whitmer said.
Mexico Responds
Emarketer Principle Analyst, Latin America, Matteo Ceurvels has also provided his thoughts.
“Mexico’s economy is entering uncharted territory as tensions escalate with its largest trading partner,” Ceurvels said. “The US’ 25% tariff on Mexican imports threatens to upend three decades of trade integration, dampening retail growth and adding pressure on businesses. We now expect Mexico’s retail sales to grow 3.3% this year to $404.83 billion—down from our previous forecast of 4.5%. However, the impact on ecommerce sales will be short-lived, as private companies adapt to the new realities of the Trump 2.0 administration. For Claudia Sheinbaum, managing this economic rift will be one of the biggest tests of her presidency, as she balances the interests of Mexico’s key industries and consumers.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
