Trucking freight crossing the borders took another hit in August as the tariff ramp-up led to a winding down of inventory frontloading.
In August, North American trucking freight fell 7% year over year. That marks the fourth drop in five months. July saw a slight uptick in freight crossing the borders by truck.
Slumping Canadian trucking freight was mostly responsible for the large drop. However, Mexican freight also experienced its first year-over-year decline since April.
Trucking freight in and out of the northern border fell by 15%. There were double-digit declines across nearly every top-10 commodity. Pearls/stones/metal were up 14%, a commodity that increased by as much as 232% in February.
At the southern border, trucking freight dipped by 2.5%. A 20% drop in vehicle freight was a large contributor to the decline. As has been the case most of the year, losses were mitigated by gains in computer-related freight. Imports of that commodity have increased by no less than 24% every month since April 2024.
President Donald Trump’s tariff policy likely drove downward pressure on North American trucking freight.
In July, Trump announced he would place a 30% tariff on Mexican goods on Aug. 1. One day before the deadline, he walked back the tariffs, giving Mexico 90 days to strike a trade deal.
Canada was not so lucky. On Aug. 1, Trump increased Canadian tariffs from 25% to 35%. Global tariffs on steel, aluminum, copper and automobiles remain in effect.
In addition to affecting trucking freight across the borders, tariffs have also caused problems for truck and trailer manufacturers. Dan Moyer, senior analyst for commercial vehicles at Freight Transportation Research Associates (FTR), at least partially blamed tariffs for declines in trailer production and backlogs and Class 8 truck orders.
“For trailer manufacturers and their suppliers, tariffs are producing costs, tighter margins, and increased risk of consolidation,” Moyer said. “Larger, integrated players are more resilient, while smaller firms are vulnerable. Many fleets are delaying replacements, relying more on used trailers and curbing expansion.”
Uber Freight notes in its third-quarter market update that strengthened enforcement of English-proficiency regulations has also caused issues for cross-border trucking freight. The logistics and supply chain management company suggested CDL policies have led to fewer drivers hauling freight across the southern border. More than 1,500 out-of-service violations related to English proficiency were issued in August. LL
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