The Trump Administration’s Impact on North American Transportation Demand

With Donald Trump winning the 2024 United States election, global trade is once again under close examination, as the soon-to-be president has recently announced that he will sign an executive order placing a 25% tariff on all imports from Canada and Mexico, along with an additional 10% tariff on imports from China.

The impact that these tariffs will have on national economies has been a major discussion point so far, but the effects it will have on logistics and transportation demands will be just as substantial, creating a new landscape, where costs, availability, and routes are all reshaped.

New Tariffs and Their Immediate Effects on Supply Chains

The proposed Trump administration’s tariffs, particularly those targeting imports from China, Mexico, and Canada, will have a major ripple effect across industries.

Canada’s lumber industry, for example, has been a major supplier of softwood to the U.S. construction sector for decades, but will now face reduced demand due to increased costs for American buyers. This could lead to job losses, lower revenues, and disruptions in the transportation networks.

Long-Term Implications for Demand and Supply

The long-term effects of the Trump administration’s sweeping tariffs will extend far beyond immediate disruptions to trade and supply chains.

On the supply side, businesses that rely on imported raw materials will face tough decisions about absorbing higher costs or passing them on to consumers.

On the demand side, higher costs for goods could lead consumers to cut back on spending, reducing overall demand for businesses and transportation services.

The new Trump administration tariffs have the potential to reshape North American transportation demand, impacting freight volume, logistics infrastructure, and industry competitiveness.

As a business owner, you must do everything you can to stay informed of new tariffs and policy changes to maintain efficiency and resilience in this evolving economic landscape.

Overseas Container Logistics (OCL) is a 3PL commercial freight-forwarding company based in Richmond, British Columbia. 

If you have any questions about this article or would like to talk to us about your transportation and freight needs, give us a call at 604-295-8236.