IN THE NEWS: State of Freight—Inside the Planning for Trump’s New Tariffs War, from the Biggest Company to the Smallest Family Business

CNBC
February 1, 2025
Lori Ann LaRocco

FROM THE INTERVIEW: President Trump imposed 25% tariffs on Mexico and Canada on Saturday, and 10% tariffs on China, making a signature campaign promise and core economic philosophy of his administration reality, with implications for everything from oil to autos to the US consumer. But for many companies across the economy, the preparations for a new tariffs war began long ago — well before Trump won the 2024 election.

From large companies in consumer sectors like Walmart, Columbia Sportswear and Lenovo, to a wide range of critical goods for infrastructure projects, importers moved quickly throughout 2024 to get as much product as they could into the US.

Conversations with clients on bringing in their products ahead of possible tariffs began as far back as March of last year, says Paul Brashier, Vice President of Global Supply Chain at ITS Logistics, with components used in infrastructure projects one of the biggest product segments being brought into the country early.

“A lot of those [infrastructure/construction] budgets were made two or three years ago, and an additional 20% in cost could blow those budgets out of the water,” Brashier said. “So you need to get them in before the tariffs so you can protect the bottom line.”

Bringing in products early requires storing them in warehouses, and that incurs additional costs. “Warehouse costs are folded into the price of a product. In the end, the consumer will pay,” Brashier said. In the case of infrastructure project equipment storage, companies absorb the cost, but it is better than paying the tariff, he added.

Watch the full video here.