Why Ignoring Tariff Impacts on Trucking Rates Could Crush Your 2025 Budget

Exchanging a handshake sealing a collaboration between a countries economies.

As the U.S. navigates a volatile trade environment in 2025, proposed tariffs are significantly impacting over-the-road (OTR) trucking rates. Shippers must remain vigilant to manage transportation costs effectively and keep their budgets aligned.

Tariffs and Their Immediate Impact on Trucking Rates

The recent 90-day tariff reprieve between the U.S. and China, reducing import duties from 145% to 30%, has led to a surge in shipping volumes. This rush to import goods before the truce ends on August 10 has caused ocean freight rates to spike, with 40-foot container costs from China to U.S. West Coast ports rising from $3,500 to $6,500, and projections reaching $8,500 by mid-June.

This ocean freight congestion is cascading into the domestic trucking sector. Increased port activity and backlogs are straining trucking capacity, leading to higher OTR rates. Shippers are experiencing elevated costs as they compete for limited trucking resources to move goods inland.

Long-Term Effects: Equipment Costs and Supply Chain Adjustments

Beyond immediate rate hikes, tariffs are inflating equipment costs. A 25% tariff on imported trucks and parts is increasing the price of Class 8 trucks by approximately $360 per unit and trailers by over $570 . These added expenses are pressuring carriers to raise rates to maintain profitability.

Additionally, the push for onshoring manufacturing to mitigate tariff impacts is altering freight patterns. While this shift may reduce reliance on international shipping, it increases domestic trucking demand, potentially leading to regional capacity shortages and further rate volatility.

Strategies for Shippers to Navigate the Turbulence

To manage these challenges, shippers should:

• Monitor Market Trends: Stay informed about tariff developments and freight rate fluctuations to anticipate cost changes.

• Diversify Transportation Options: Utilize a mix of carriers and modes to enhance flexibility and mitigate risks associated with capacity constraints.

• Negotiate Contracts Wisely: Consider long-term contracts with carriers to lock in rates and ensure capacity during peak periods.

• Invest in Technology: Leverage transportation management systems (TMS) or systems uncovering your cost to serve and detailed freight costs.

• Collaborate with Partners: Work closely with logistics providers to develop contingency plans and optimize supply chain resilience.

  
  

Conclusion

The interplay between proposed tariffs and OTR trucking rates presents significant challenges for shippers in 2025. Proactive management of transportation strategies is essential to control costs and maintain budgetary alignment. By staying informed and adaptable, shippers can navigate this complex landscape effectively.