Earlier this month, Trump imposed additional tariffs on steel and aluminum imports and then said he will introduce a 25% tariff on automobiles, semiconductors and pharmaceutical imports. The tax on imported cars could come as soon as April 2, reports say.
In advance of President Trump’s second inauguration, we started asking Trucks, Parts, Service readers what they thought of tariffs with a brief poll — scroll down to see more — on our website. We’ve had 546 readers complete the poll to date, and here’s what they’ve had to say. (You can add your two cents by completing the poll below in the story.)
Responses as of Feb. 25, 2025.
Do you believe President Trump will ultimately levy tariffs on goods from China, Canada and Mexico?
Since launching our poll on Jan. 16, nearly half of TPS readers have stated they expected Trump to levy tariffs on goods from China, Canada and Mexico. Thirty-four percent said they expect taxes on Chinese imports, but not on Mexican and Canadian goods. Just 15% said they don’t expect any tariffs on those three countries and 4% said they expect tariffs on Canadian and Mexican imports but not Chinese.
Trump’s reasoning was Canada, Mexico and China all represent a threat posed by illegal aliens and drugs, including fentanyl.
“Tariffs are a powerful, proven source of leverage for protecting the national interest,” the White House said in a statement. “President Trump is using the tools at hand and taking decisive action that puts Americans’ safety and our national security first.”
The tariffs against Canada were delayed for 30 days from Feb. 3 after Canada announced it would spend $1.3 billion on a plan to reinforce its border to stop illegal immigrants and the trade in fentanyl. Mexico’s tariff was also paused after the country posted on social media it will immediately reinforce its border with 10,000 members of its national guard.
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“A good idea, but (tariffs) should be staged over 18 months (5%, 10%, 15%) to allow U.S. sourcing to adapt and compensate,” one reader commented. “I believe the Canadian and Mexican tariffs are bargaining chip bluffs, to be drastically reduced if they [show] some concession. Not so with China. [The plan] also needs a corresponding discount or tax credit addressing U.S. cost of manufacturing. Not wage limits, per se, but overhead [capital expenditures equipment and buildings] and corporate costs of employees and operations [operational expenditures] to incentivize more domestic manufacturing.”
Responses as of Feb. 25, 2025.
How do you anticipate your vendors would manage any tariff-related price changes?
Most TPS responders, 74%, have reported they expect vendors to pass tariff price changes on to their customers, perhaps in addition to other options. Less than a quarter (22%) said they expect vendors to shift procurement to other countries; 13% said they didn’t know what to expect; and just 6% said they expect vendors to absorb the tariff costs.
As one reader stated, “History shows that, ultimately, the consumer pays the price.”
Another respondent blamed tariffs for inflation.
“Steel and aluminum tariffs have caused OEMs to raise new equipment prices up to 25% over previous models and the American consumer is paying the bill,” the responder wrote. “I’d like to see those big checks we’ve been getting from China.”
How do you anticipate your business would manage any tariff-related price changes?
In their own businesses, again, TPS readers said they expect to pass any tariff-related costs on to their customers. Even fewer, 18%, said they plan to shift procurement to countries not affected by tariffs; 13% didn’t know; and just 8% said they would absorb them.
“As a manufacturer in the U.S. with almost all materials being U.S.-made, our costs will see little effects from tariffs,” the reader said. “With our main competitors in China and Mexico, we do foresee the potential new customers coming (to) source their product from us as the tariffs would make us more competitive.”
Other readers said they’ll be willing to shoulder higher costs if it means goods are made domestically.
“Foreign manufacturing isn’t just doom for jobs here but also (for the) quality of goods for ever-inflating prices,” a responder said. “I would rather pay my countrymen to actually ‘get what I paid for.’”
Responses as of Feb. 25, 2025.
Have you increased your purchasing levels to account for potential tariffs? Have you witnessed any pull forward of customer purchasing to account for potential tariffs?
Most TPS readers (69%, on both questions) said no, they haven’t increased purchasing levels ahead of threatened tariffs. That’s not surprising, given the vagueness of the threat of tariffs. Usually, Dr. Bob Dieli told TPS, tariffs are very specific, applying to narrow product categories where goods are also available domestically. But Trump’s threats were initially non-specific and, eventually, a blanket threat. Most companies can’t afford a wholesale pull-forward on everything and, without specifics on what would be taxed, it appears businesses are holding the line on purchasing.
“As a tool for a specific product, it’s OK,” one reader stated, “but a sweeping tariff to a whole nation is a bad move that will cause massive inflation.”
The threat of tariffs could be a negotiating tool, but some readers wonder at its effectiveness.
“Good negotiating strategy as long as the threat doesn’t last too long,” one responder said. “Then they will disrupt the economy. Trump needs to create stability for longer periods of time. [It] should have been a 60-day delay and then roll at 30-day increments.”
Responses as of Feb. 25, 2025.
Do you anticipate tariffs would lead to supply chain disruptions?
No one wants to see the kinds of supply chain tangles the COVID-19 pandemic wrought, but the survey shows most responders, 63%, expect tariffs will mean another round of supply chain disruptions. Less than a third, 27%, said not to expect disruptions and 9% said they don’t know.
Tariffs, especially those in Mexico, would definitely put in a kink in supply chains. Every truck OEM and many components suppliers have manufacturing facilities in Mexico. The Economic Policy Institute says in 2023, the U.S. imported 14 times as many trucks and buses as in 2007, with far more units produced internationally than domestically. Nearly 90% of truck and bus imports came from Mexico.
“It’s going to hurt our business again,” one reader said. “We are finally at a point where chassis production has caught up and (we) are now challenged by body (manufacturing) constraints. This will jeopardize gains.”
Responses as of Feb. 25, 2025.
Do you know the country of origin for most products you stock?
About half of respondents, 56%, said they know the country of origin for most products they stock. Around a third, 35% know the country for some, and 9% do not know the country of origin.
Many readers saw tariffs as a way to spur more domestic production, but wonder if they’ll stay around in future administrations or disappear when economic conditions become too rough.
“Investors will never give companies enough cash for them to build factories,” one reader said. “The entire U.S. economy runs on quarter-by-quarter profit reporting. Long-term U.S. growth died the day the global supply chain was born.”
“Current domestic manufacturing requires intensive capital investment, and that requires a 10- to 20-year plan,” another read said. “Governments change like the wind, so instead of manufacturing build-out, we will see domestic manufacturers raise their prices to match or exceed imports. Windfall profits for a few and big price increases for customers. Not a good idea.”
Other readers thought tariffs may be offset by other market conditions.
“I believe the increased labor costs and union pressures will still outweigh the increase in costs incurring from tariffs,” a responder stated. “However, I do believe it may cause some offshore imports to be moved to Mexico if their tariffs are indeed much lower than China.”
Workforce concerns also cropped up among TPS readers.
“I think we’ll see some improvements,” one said. “I ask myself, who in the U.S. will fill these jobs? We push our children to college and don’t consider manufacturing jobs. Labor costs in the U.S. are high based, understandably, on the quality of life we all hope to achieve here.”
Another reader said tariffs will help domestic manufacturing, “but the U.S. doesn’t have the labor force to support it. Immigration policy will need to be more open to have enough labor to support the manufacturing increase.”
Responses as of Feb. 25, 2025.
Which potential tariff would have the largest impact on your business?
Most TPS readers, 39%, say the tariff on Mexican imports would have the largest effect on their business. Around a quarter, 24%, said they didn’t know; 19% said the 10% tariff on China; 18% said the tax on Canadian goods would be the worst for their bottom line.
Readers are right to fear Mexican tariffs the most. The country is the fifth-largest manufacturer of heavy-duty vehicles for cargo, the International Trade Administration says. It’s home to 14 manufacturers and assemblers of buses, trucks and tractor trucks, and two manufacturers of engines. It is the leading global exporter of trucks, 95% of which go to the U.S.
The United States-Mexico-Canada Agreement (USMCA) took effect in 2020 and is the successor to the North American Free Trade Agreement (NAFTA). The USMCA was negotiated during the first Trump administration. The act required 70% of heavy trucks be produced in North America with core parts coming from the U.S., Canada or Mexico. Goods meeting the content requirements will receive duty-free access to the American market, according to the agreement.
The Brookings Institute called proposed 25% tariffs “inconsistent” with the USMCA and points out the agreement is up for review next year and these tariff threats may be a way to get more concessions from the two countries in those negotiations. But it comes with a cost.
“Threatening 25% tariffs on Mexico and Canada has sent a signal globally governments cannot rely on an agreement with Trump — even one he negotiated,” the institute says. “In response, governments will focus on one-off deals to address specific U.S. concerns, while avoiding getting drawn into agreements that are based on longer-term cooperation. This will make it more difficult to address U.S. economic and security concerns with China, which will require building more political, challenging, complex and longer-term cooperation with other countries in areas such as export controls, investment screening and industrial subsidies.”
Some readers, while supporting the tariffs on Chinese products, were against taxing Canadian and Mexican imports.
“I am supportive of the tariffs on Chinese product, not on Canadian or Mexican product,” one said.
Another reader felt Chinese tariffs are necessary “because they don’t play by the rules.” Tariffs on Canadian and Mexican goods, however, would be harmful because there’s no alternative for sourcing products.
“I do understand companies use both Mexico and Canada as ‘value add’ centers to get Chinese goods to the U.S. with lower tariffs,” the reader added. “That loophole needs to be closed, but not with tariffs on Mexico and Canada.”
Responses as of Feb. 25, 2025.
Do you believe tariffs on goods from China, Canada and Mexico are a good idea?
A plurality of TPS readers say tariffs are a bad idea. Nearly half (49%) said tariffs on China, Canada and Mexico are not a good idea. A little more than a third (38%) support the taxes, while 13% said they don’t know.
“Everyone knows Trump’s games, but other countries know how to play them too, if forced,” one TPS reader said. “The stakes are too high for the U.S. economy, inflation, supply chain disruptions, parts and equipment shortages, consumer pricing, etc., to risk such as gamble.”
Some readers see the tariffs as part of a larger plan to bring manufacturing back to the United States.
“We need to be a manufacturing country,” one reader said. “We can’t continue to rely on other countries while they bleed us dry. It will be short-term pain, but long-term gain.”
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Responses as of Feb. 25, 2025.
Responses as of Feb. 25, 2025.
Responses as of Feb. 25, 2025.
Responses as of Feb. 25, 2025.
Responses as of Feb. 25, 2025.
Responses as of Feb. 25, 2025.
Responses as of Feb. 25, 2025.
Responses as of Feb. 25, 2025.
