With former President Donald J. Trump winning back the White House, it is clear that the supply chain and freight logistics markets are in for some changes on various fronts.
The topic that received the most attention in the run-up to the election focused on tariffs, in terms of what may be coming, with Trump saying repeatedly on the campaign trail that he plans to increase the percentage of tariffs levied on companies importing into the United States, from where they have remained since they were implemented in 2018, during his first term in office. To that end, he has said he is committed to imposing a 10%-to-20% tariff on all imports regardless of what country they come from, and 60% or higher on goods entering the U.S. from China.
When the Trump administration first rolled out its plan in mid-2018, it was comprised of a 25% tariff on $50 billion worth of goods imported from China, under the purview of an “America First” policy geared towards a more fair and beneficial position for U.S. companies, as well as focusing on: protecting domestic property and intellectual property; stopping noneconomic transfers of industrially significant technology and intellectual property to China; and enhancing access to the Chinese market. These tariffs subsequently ignited a trade war between the United States and China that continues today.
Trump’s re-election also translates into the nation’s corporate tax rate remaining at 21%, which is notable, considering it was set to expire after 2025. wth indications he plans to lower it to 15%.
National Retail Federation President and CEO Matthew Shay recently said he has advocated for a pro-growth tax policy, referencing the 2017 Tax Act, which reduced corporate taxes in the United States from 35% to 21%. He noted that this reduction aligns the U.S. corporate tax rate more closely with, yet still higher than, the average among OECD (Organization for Economic Cooperation and Development) countries.
“Twenty-one percent is more in line with that average and has made the U.S. a much more competitive operating environment,” he stated. “It allowed businesses, particularly retailers, the opportunity to reinvest in their operations rather than sending that additional 14% in corporate taxes to the federal government. Instead of handing over that money, retailers invested in supply chain efficiency, digitization, innovation, reshoring, and improving conditions for their workers—laying the foundation for a more resilient experience during COVID-19, which was a challenging time.”
The American Trucking Associations (ATA) warmly welcomed Trump’s re-election.
American Trucking Associations President and CEO Chris Spear said ATA looks forward to working with Trump’s transition team and new administration in the days and months ahead.
“President Trump made trucking a priority throughout his first term and partnered with us to enact policies that strengthened the supply chain, grew the economy, and delivered for all Americans,” said Spear. “His second term offers an historic opportunity to build upon that record and show why the best approach to governing is one paved by common sense. That begins by replacing EPA’s electric-truck rule with national emission standards that are technologically achievable and account for the operational realities of our essential industry.
And with the Tax Cuts and Jobs Act set to expire next year, Spear explained that ATA is ready to work across the aisle on Capitol Hill to achieve pro-growth tax reform, including repealing what he called the century-old, punitive federal excise tax on heavy-duty trucks and trailers that penalizes the trucking industry for investing in newer, cleaner, and safer equipment.
“We also look forward to working with the Trump Administration and Congress on a host of policies to support our workforce, protect the right of independent truckers to choose their own career path, and end lawsuit abuse by restoring balance and fairness to the civil justice system,” he said. “The next four years will present big decisions for our nation. As we tackle these challenges and opportunities together, the Trump Administration and 119th Congress will find a constructive partner in ATA.”
Supply chain risk management platform services provider Resilinc said that Trump’s re-election is set to dramatically reshape global supply chains and trade dynamics, explaining that from aggressive trade policy and reshoring/nearshoring acceleration to global trade realignment and regulatory changes, Trump’s policies are expected to have a major impact on industry and supply chains.
“A Trump administration would likely intensify UFLPA (Uyghur Forced Labor Prevention Act) enforcement, aligning with his hawkish stance on China,” said Resilinc CEO Bindiya Vakil. “Trump has signaled a more aggressive tariff strategy, which could significantly disrupt supply chains and impact company margins. Industries with complex cross-border logistics, such as chemicals and automotive, may face increased costs, particularly if tariffs are imposed on Mexico. This approach could reshape global supply chains and force companies to reevaluate their sourcing strategies, potentially accelerating the trend of nearshoring or reshoring production.”
