INDIANAPOLIS — The trucking industry is gearing up for prolonged uncertainty in light of tariffs imposed this week by President Donald Trump.
The 25% tariffs on Canada and Mexico could have a “pretty severe” impact on the commercial vehicle sector, Jim Murray, client development manager at fleet management service provider Merchants Fleet, told Equipment Finance News during Work Truck Week. Trump today suspended most new tariffs on Mexico until April 2, but the tariffs on Canada remain in place.
“You’re going to have higher vehicle costs,” he said on March 5. “You’re going to have higher fuel costs, potentially, because we’re getting fuel from Canada. … And when you’re looking at a fleet of thousands of vehicles, that’s severe.”
A more balanced mix of domestic and international production of trucks and truck parts is one potential benefit of the tariffs, Murray said.
Increased costs could especially strain OEMs that specialize in high-end vehicles, Tom Gmahle, manager of van and fleet finance at Mercedes-Benz Financial Services, told EFN.
“Our price point right now is a lot higher than Ford and all the other domestics,” he said. “So that’s not going to help whatsoever. … In the end, it will probably cost everybody more money. And I know we’ve been preparing for it.”
Fleet owners may also feel pressed to increase their typical order volume this year before potential price hikes, Murray said.
