Tariffs Expected to Raise U.S. Freight Costs, Impact Vehicle Prices

Recent changes and proposed increases in U.S. tariffs, including a 145% tax on certain China imports and the removal of de minimis exemptions, are already affecting two-thirds of American freight and logistics firms, with most bracing for higher vehicle and equipment costs. Small businesses dependent on international suppliers, such as Hawaiʻi-based Mālama Eco Products, face significant disruptions and are reconsidering their supply chains, citing concerns over the feasibility of relocating manufacturing domestically due to infrastructure and labor challenges. Industry leaders note that much of the economic impact is still forthcoming, but caution that the measures, intended to encourage U.S. manufacturing, may not be practical given current capacity and workforce realities. Many logistics companies are proactively preparing for continued inflation and supply chain uncertainty as these tariff policies roll out. Business owners also observe that while the rationale for tariffs is to boost domestic production, the changes are viewed as self-inflicted and potentially damaging, especially for sectors highly reliant on imports. The combination of tariffs and existing cost challenges, such as rising diesel prices, is heightening financial pressure across the U.S. logistics sector.