Barring any last-minute changes President Donald Trump intends to implement his long promised tariffs on Mexico and Canada Tuesday, adding a 25% cost to the import of all goods from Mexico, a 10% tariff on Canadian energy products and a 25% tariff on all Canadian other items moving forward.
The President has teased the tariffs since his time on the campaign trail in 2024. He initially announced plans to institute them last month only to delay them for 30 days after last-minute discussions with Mexico President and Claudia Sheinbaum and Canada Prime Minister Justin Trudeau. The two neighbors offered assurances of improved border security at the time and have followed through with more troops, but it appears Trump views the efforts as unsatisfactory.
The President also intends to add an additional 10% tariff on Chinese goods Tuesday, following the 10% tariff that went through against the country last month.
“Tomorrow — tariffs 25% on Canada and 25% on Mexico. And that’ll start,” Trump announced Monday from the White House.
Despite Trump's enthusiasm for tariffs, broader economic and trucking industry sentiment is much lower.
In a ongoing poll of more than 550 Trucks, Parts, Service responders, 49% state they view the tariffs on the three nations as a bad idea, with only 38% supporting the increased taxes. Among that group, 38% state tariffs on Mexico would have the largest impact on their operations, while 75% of responders anticipate tariff action will lead to price increases at the vendor and customer-facing level, and 64% expect supply chain disruptions.
MEMA polling is similar, with tariffs on Mexican goods again being seen as the most damaging. According to the association's most recent Pulse survey, 86% of MEMA supplier members believe tariffs on Mexico would be negative for their operations, with 65% calling them "significantly negative."
"We are seeing an overwhelmingly negative response to tariffs," says Joe Zaciek, MEMA director of Research and Industry Analysis.
American Trucking Associations (ATA) President and CEO Chris Spear stated Tuesday President Trump's goal to reduce the flow of illegal drugs such as fentanyl into America is a good one, but feared the economic repercussions of using tariffs to fight the drug war.
"Truckers live in every state and community throughout our country. We have seen firsthand the devastating effects of fentanyl and the humanitarian crisis caused by unchecked illegal immigration. President Trump has rightfully placed an emphasis on tackling these challenges, and the trucking industry is committed to being a part of the solution," he says.
"As we work to make our communities stronger and safer, we must also avoid unintended consequences that could exacerbate another one of Americans’ top concerns: the high prices for goods and groceries. With the success of USMCA and the growing trend of nearshoring, the North American supply chain has become highly integrated and supports millions of jobs.
Spear goes on, "Imposing border taxes on our two largest and most important trading partners will undo this progress and raise costs for consumers. The 100,000 full-time hardworking truckers hauling 85% of the surface trade in goods with Mexico and 67% of the goods traded with Canada will bear a direct and disproportionate impact. Not only will tariffs reduce cross-border freight, but they will also increase operational costs. The price tag of a new truck could rise by up to $35,000, amounting to a $2 billion annual tax and putting new equipment out of reach for small carriers.
"The longer tariffs last, the greater the pain for truckers as well as the families and businesses we serve. The Trump Administration knows our industry well and understands how vital trucking is to our economy and supply chain. President Trump proved his dealmaking skills during his first term by negotiating the USMCA. To prevent unnecessary economic pain, the trucking industry urges all parties to come to the table once again to swiftly reach a new agreement."
Concerns can be found in other areas too.
[RELATED: Trump imposes steel and aluminum tariffs]
Warren Buffet said in an interview on CBS Sunday that "tariffs are actually — we’ve had a lot of experience with them — they're an act of war, to some degree." Stocks also fell sharply Monday as tariff realizations hit the market, while manufacturing costs in February trended higher as business tariff fears began impacting pricing.
"Business optimism about the year ahead has consequently fallen compared to the buoyant mood evident in January, with February seeing an increase in the number of companies citing concerns over tariffs and other policies introduced by the new Trump administration," wrote S&P Global's Chief Business Economist Chris Williamson.
"Worries have noticeably swelled in relation to the inflationary impact of tariffs, which were widely reported as having caused factory input costs to spike higher in February. These higher costs are being passed on to customers, resulting in the strongest factory gate price inflation recorded for two years, which manufacturers fear may in turn not only damage sales in the coming months but also encourage the Fed to take a more hawkish view of inflation."
