Experts say the freight system could handle an increase in imports from Canada and Mexico, but there is little sign of a significant increase.According to The New York Times, companies in the United States do not seem to be actively rushing in shipments from Mexico and Canada before the high tariffs threatened by President Trump take effect on Saturday.
President Trump had previously announced that the United States would impose tariffs of 25 percent on imports from Canada and Mexico, citing concerns about immigration and drug trafficking. These tariffs would significantly increase the cost of imports, especially since they are not included in the U.S.-Mexico-Canada Agreement, the trade deal signed by Trump in 2020. Canada and Mexico make up 30 percent of U.S. trade, and many industries, including the auto industry, could face additional costs due to these tariffs.
However, Howard Lutnick, the president’s nominee to lead the Commerce Department, suggested on Wednesday that Trump could withdraw his threat or reduce the tariff if he believes that Canada and Mexico are taking steps to address his concerns.
Despite the looming tariff deadline, data shows only a slight increase in freight volumes on road and rail. Transportation experts believe that rail and trucking companies have the capacity to handle any changes caused by the tariffs. This is in stark contrast to 2021 and 2022, when a surge in imports overwhelmed supply chains, leading to a sharp rise in shipping costs and contributing to inflation.
Scott Shannon, vice president of North America cross-border at C.H. Robinson, a freight forwarder, stated that the industry is well-equipped to handle significant changes in the market.
It appears that the industry is not overly concerned about the potential impact of the tariffs, and is confident in its ability to adapt to any changes.
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