Tariffs are likely to send heavy-duty truck prices higher.
Worried about the effect of tariffs on new-truck prices? Fleet Advantage has introduced a program to help trucking fleets mitigate the risk.
New tariffs were announced recently on multiple U.S. trading partners, including Canada and Mexico. These duties follow tariff increases earlier this year on imported goods from mainland China as well as increased tariffs on imports of steel and aluminum from sources worldwide.
With almost half of U.S. Class 8 heavy truck sales produced in Mexico, all else equal, the proposed 25% tariffs on Mexico would influence truck imports and exports as well as manufacturing, pricing, profitability and volume, according to Fleet Advantage.
To help organizations with transportation fleets plan for any price adjustments on heavy duty trucks from OEM partners, Fleet Advantage, which offers specialty financing, fleet data analytics, fleet management services, and life cycle cost management, announced a strategic Tariff-Readiness program.
Highlights of Fleet Advantage’s Tariff-Readiness Program:
- Protection from Tariff-Related Fees: All trucks currently scheduled for production on or before May 16, 2025 (depending on OEM), are protected from any tariff-related fees.
- Optimal Ordering Period: Based on feedback from all OEMs, to avoid high-cost increases and inefficiencies, it is recommended to place orders and build between now and May 30, 2025.
- Significant Cost Savings: Fleet Advantage can help organizations save over $4 million on 100 trucks, considering the full timeline from June to July 2025.
Additional custom program options and savings are available through a consultative session with Fleet Advantage.
Do You Have a Plan in Place for Tariff-Driven Truck Price Increases?
Each of the major truck OEMs have announced slightly varying schedules imposing a cascade of leveled or tiered price increases between May and July. Ordering trucks in these time periods could greatly impact the per-truck price.
In a survey, nearly half of executives polled (47%) said they are aware of the OEM schedule of tariff-related price adjustments planned for the phased approach over the next few months. The majority (53%) believe the tariffs will be in effect for the next one to two years, and only 29% of respondents said they have a tariff plan in place to address price adjustments on truck costs.
This strategic initiative is part of Fleet Advantage’s broader asset management. By proactively addressing the potential impact of tariffs, Fleet Advantage is committed to helping its clients navigate these uncertain and challenging times with minimal disruption and maximum efficiency.
More Insights from Fleet Advantage on Planning for Tariff Costs
In alignment with this initiative, Fleet Advantage also recently released a new episode of its Driving Success podcast titled “Tariffs & Truck Procurement for Large Fleets: What You Need to Know.”
The episode offers insights from Senior Vice President of Fleet Operations, Brian Antonellis, CTP, about how organizations with transportation fleets can proactively manage truck procurement strategies in light of the new tariff environment. It serves as an additional resource to help organizations stay informed and make data-driven decisions during this changing economic period.
“We understand the concerns of our client partners regarding the possible cost increases from these tariffs,” said Brian Holland, President and CEO of Fleet Advantage. “Our Tariff-Readiness program is designed to provide immediate relief and strategic guidance to ensure that corporate fleets remain operational with business flexibility in mind. By planning ahead, our clients can mitigate economic and financial risks and capitalize on opportunities, ensuring long-term stability and success.”
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