Trade Wars and Tariffs Take the Freight World by Storm

Nick Terry • March 14, 2025

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It is no secret that the heightened trade wars have allies and adversaries on edge. New tariffs from the U.S. government and major changes to port fees are creating big disruptions. Shippers, trucking companies, and ports are scrambling to adjust, especially with so much uncertainty about how these changes can impact the freight economy.

Experts are confused about the Trump administration’s new direction. The agriculture industry faces serious threats from falling sales to China, and spot freight rates continue to spike. Even truck orders are impacted, with recent data showing a sharp drop. Uncertainty is everywhere.

To ensure you are always well-informed, we have curated all the latest news, so keep reading as we dive into how all this could impact your freight operations.

US Tariffs, Shipping Fees Set to Reshape Trade, Port Activity

The Trump administration has raised tariffs on Chinese goods by 20%, but is not stopping there. Plans are underway to introduce reciprocal tariffs on April 2. Shippers are moving goods to prepare for these changes, but trade with Canada and Mexico remains uncertain, with tariffs repeatedly imposed, rolled back, and delayed.

A separate proposal from the U.S. Trade Representative aims to charge ships built in China up to $1.5 million per port call. Since many of the world’s container vessels are Chinese made, this could drive up costs for cargo owners and shift shipping patterns. Companies may start using larger vessels or consolidating shipments to reduce port calls, which could reduce traffic at smaller U.S. ports.

While ports handled increased import volumes late last year without major problems, pressure is building.

US Agriculture Faces Growing Threat from Chinese Tariffs

Experts warn that U.S. agriculture will suffer the most from China’s tariff retaliation. Low margins and global competition make it difficult for American farmers to recover lost sales. Peter Friedmann of the Agriculture Transportation Coalition cited past trade disputes in which U.S. farmers suffered heavy losses and required government subsidies to stay afloat.

China has already been shifting away from U.S. suppliers, increasing purchases from Brazil and Argentina. The latest tariffs target key American exports, including cotton, pork, beef, and soybeans, all of which have alternative sources in global markets. Recent data from the U.S. Department of Agriculture shows soybean shipments to China have fallen sharply, with January volumes dropping from 3.8 million tonnes last year to 1.8 million this year.

Trade experts say the White House has not fully considered the long-term damage these trade policies could cause. Many in the agriculture sector fear these trade shifts could have lasting consequences well beyond the current tariff cycle.

Uncertainty Over Tariffs Disrupts Cross-Border Trucking

Trucking companies and logistics providers are adjusting to shifting tariff policies. Duties on USMCA-compliant imports from Canada and Mexico are currently suspended until April 2. This temporary pause has triggered a surge in freight movement as shippers rush to take advantage before potential new tariffs take effect.

Border crossings have slowed, and goods entering Canada and Mexico take longer to be transported. Carriers are staying in close contact with customers as businesses weigh their options. Some shippers are working through the process of qualifying for USMCA exemptions, while others are breaking down shipments to reduce duty costs.

Logistics firms report a spike in volumes, particularly from Mexico, and a tightening of available trucking capacity.

Truck Orders Drop as Tariff Uncertainty Disrupts Market

Orders for Class 8 trucks in North America fell sharply in February, down 34% from a year ago and 29% from January. This marks the second straight month of declines following a brief spike in December. Analysts point to trade and economic policy uncertainty under the new administration as a major factor behind the slowdown.

The drop was even steeper when adjusted for seasonal trends, with February posting the lowest figures in nearly two years. While some manufacturers, such as Mack Trucks, report steady demand in vocational markets, overall investment in new trucks appears to be stalling.

Industry experts say tariffs on Canadian and Mexican imports, which affect nearly half of all Class 8 trucks built for the U.S. and Canadian markets, affect orders.

Additional tariffs on steel and aluminum could further complicate fleet purchasing decisions.

US-Canada Tariffs Push Trucking Costs Higher as Volumes Drop

Cross-border trucking costs surged in early March, even as fewer goods moved between the U.S. and Canada. Spot rates for Toronto-to-Chicago shipments jumped 18%, while freight volumes on that route fell 20%. The trend was similar in the opposite direction, with rates rising 8% as loads dipped 2%. A shrinking supply of available Canadian trucks has tightened capacity, compounding the pressure.

The situation on the southern border was different. Shipments from Mexico increased 12% week over week, though rate hikes remained small. The difference comes down to how goods move. U.S.-bound freight from Mexico often gets transferred to domestic trucks at the border, while Canadian shipments move directly to their destinations.

When a fresh round of tariffs on Canadian and Mexican goods took effect (briefly) on March 4, some businesses opted to delay shipments.

CMA CGM Pledges $20 Billion Investment in US

French shipping executive Rodolphe Saadé met President Trump at the White House and committed to investing $20 billion in the U.S. over the next four years. The funds will go toward expanding CMA CGM’s U.S.-flagged fleet, upgrading port operations, building a Chicago airfreight hub, and adding new logistics infrastructure. The investment is expected to create 10,000 jobs.

The planned investment includes $8 billion for new container ships, $7 billion for logistics, $4 billion for ports, and $1 billion for air cargo. The company will add 20 new U.S.-flagged ships, likely built in South Korea, while exploring options for U.S. shipyard production. Trump has been pushing for a revival of the U.S. maritime industry, with plans to impose fees on Chinese-built ships and introduce new shipbuilding programs.

However, Saadé warned that such fees could disrupt trade. CMA CGM, the world’s third-largest container carrier, has been expanding its presence in the U.S., already employing 15,000 people and operating major terminals in Los Angeles and New York-New Jersey. The company plans to double its warehouse network and open an R&D center in Boston.

Port of LA Starts Year with Record Cargo Volumes

The Port of Los Angeles handled 924,245 twenty-foot equivalent units (TEUs) in January, making it the busiest start to a year in its 117-year history. Volume increased 8% from the previous year, continuing a seven-month stretch of strong container movement.

Importers moved goods early to avoid potential tariff increases and to prepare for Lunar New Year slowdowns. Loaded imports rose 9.5% year over year to 483,831 TEUs, while loaded exports dropped 10.5% to 113,271 TEUs. Port officials reported that despite the high volumes, cargo moved efficiently without major delays.

Navigate Truck Rates, Financials with Entourage Freight Solutions

Tariffs and trade spats have the freight economy trending around historic lows. While this can seem like good news for carriers as rates skyrocket, it also means the market is somewhat unstable, and trucking carriers will do what they can to recoup costs and stay afloat.

Shippers need access to freight management services and real-time data to manage their shipments and stabilize them in a volatile environment.

Entourage Freight Solutions provides steady services that help you navigate an ever-changing logistics environment and receive important information in real time.

Entourage Freight Solutions offers the following services and many more:

Our LTL Service provides on-demand access to capacity, real-time data, and peace of mind in this high-stakes world.
Our Freight Management lets your team stay organized across inbound and outbound logistics, tracking market capacity and using automation notifications to keep everyone informed.
Our Refrigerated Transport provides expertise in everything from finished goods to raw materials, ensuring products arrive on time and in top condition.

Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.

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Tariffs, Trade Policy, and the Great Freight Fallout

By Nick Terry • April 28, 2025

In 2025, trade policy is no longer something that the freight industry can leave on the back burner. Trade policy today is shaping strategy at every level. From tariff escalations and retaliatory duties to sweeping regulatory changes and targeted maritime fees, supply chain leaders are navigating a freight market in which unpredictability is the only constant. Sourcing decisions are shifting, pricing dynamics are unstable, and long-standing operational models are being rewritten in real time. This edition brings together key stories highlighting the growing pressure across logistics channels. Each development points to an industry moving fast, and often reactively, to keep pace with volatile policy decisions. Tariffs Stall US Freight Recovery as Shippers Pause Orders The recent move by the U.S. Trade Representative (USTR) to impose entrance fees on Chinese-built ships calling U.S. ports has only added to the confusion and uncertainty gripping global supply chains and freight operations. Shippers are pausing plans and slashing orders, with truckload volumes, containerized imports, and manufacturing output all showing signs of contraction. Ocean freight spot rates have collapsed: Asia-U.S. West Coast rates have fallen 61% since January to $2,050 per FEU, while East Coast rates have dropped 53.7% to $3,100 per FEU . Blank sailings are rising, with vessels leaving Asia half-empty. Amazon and Five Below are among the major retailers reducing orders from Asia. Container imports jumped 15.3% in 2024, but forecasts now predict a 20-27% decline through the summer. Exporters, particularly agriculture and forestry suppliers, are also squeezed, facing 125% retaliatory tariffs from China. Truckload and intermodal rates remain stagnant, while U.S. factory output fell sharply in March. US Apparel Importers Brace for Long-Term Volume Declines According to Trade Partnership Worldwide, a 124.1% tariff on Chinese clothing and footwear is expected to reduce U.S. apparel imports by 1.6% annually . China still accounts for 41.7% of apparel shipments, leaving limited flexibility for diversion. The American Apparel and Footwear Association (AAFA) is warning of price hikes and mounting infrastructure stress as sourcing pivots toward Vietnam, India, and Indonesia. A looming May 2 deadline for de minimis exemptions could further complicate flows and delay deliveries. Even with a temporary 90-day pause in reciprocal tariffs, the policy uncertainty already affects long-term planning. AAFA CEO Steve Lamar calls the shifting policies “chaotic,” and warned that high tariff pressure will hit both importers and U.S. manufacturers reliant on Chinese components. Port and rail capacity limitations at larger gateways are adding to concerns. Retailers now face rising costs, shrinking margins, and operational delays — all while consumer demand continues to shift rapidly. Freight Pricing Gains Lose Momentum According to the TD Cowen/AFS Freight Index, Q1 truckload rates rose 5.9% above the 2018 baseline, but are expected to decline slightly in Q2. Shippers are responding to tariff threats with aggressive front-loading and shorter-haul routes, driving per-shipment costs to three-year lows. LTL carriers remain focused on profitable lanes and high-quality freight rather than chasing volume. The index forecasts a 0.7% year-over-year increase in LTL rate per pound for Q2 , despite sustained demand softness and macro uncertainty. A key driver behind the softening spot market conditions is a shift to shorter hauls and regionalized distribution, pushing per-shipment costs to their lowest point in more than three years. This trend reflects how retailers and manufacturers are repositioning inventory in response to tariff volatility, as NRF’s Jonathan Gold and DAT analyst Dean Croke noted. Meanwhile, the LTL sector is seeing a 4% rise in fuel surcharges, offsetting lower weights and shorter hauls. With the freight market still under pressure after 26 months of contraction, optimism remains subdued as we enter the midyear period. US Truckload Freight Spot Rates Continue to Fluctuate National benchmark rates have experienced a decline across all categories. As of April 18, dry van decreased by 4 cents to $1.62, reefer by 2 cents to $1.88 , and flatbed by 3 cents to $2.16. This marked the first overall decrease since late January, signaling potential shifts in market dynamics. These changes can be attributed to factors such as tariff uncertainties and tighter capacity, especially affecting the flatbed market. Flatbed rates rely heavily on manufacturing activity in the country, which has been particularly hard-hit by the ongoing trade war with China, and to some extent, with the rest of the world. US Finalizes Tiered Fee Plan Targeting Chinese Ships The U.S. is moving forward with a revised plan to levy voyage-based fees on Chinese-owned and Chinese-built ships calling at American ports. The U.S. Trade Representative (USTR) announced the measure as part of a broader Trump administration effort to counter China’s dominance in shipbuilding and logistics while reigniting domestic ship construction and port infrastructure investment. Starting in six months, Chinese operators will be charged $50 per net ton, with an annual increase of $30 for three years . Non-Chinese carriers using Chinese-built vessels will face lower rates, beginning at $18 per ton or $120 per container, with annual increases. The USTR capped fee applications at five voyages per vessel annually, scaling back its original, more punitive per-port-call proposal after intense industry pushback. The fees are tied to findings from a USTR investigation, which concluded that China’s shipbuilding dominance — producing 29% of global fleet capacity and 70% of all container ships on order — stemmed from unfair trade practices. Exemptions apply to ships arriving empty, those in the Great Lakes or U.S. territories, and some bulk exports. LNG vessel transport restrictions will phase in over 22 years to support U.S. production. China’s largest container carrier, Cosco Shipping Lines, has sharply criticized the USTR’s plan. In a strongly worded statement, Cosco labeled the move as “discriminatory,” and warned it would disrupt global industrial and supply chain stability. Cosco denied allegations from that USTR investigation that claimed China manipulated its shipping and shipbuilding sectors to gain an unfair advantage. The carrier said it upholds “integrity, transparency, and compliance” in global competition and remains committed to ensuring the resilience of international trade. Walmart Investing $6B in Mexico, Central America Store Expansion Walmart of Mexico and Central America will invest $6 billion to open new stores across the region , reinforcing its long-term commitment to growth in Latin America. The expansion will include Bodega Aurrera, Walmart Supercenters, Sam’s Club, and Walmart Express formats, building on a robust network of 3,200 stores across all 32 Mexican states. This latest move echoes Walmart’s earlier $1.3 billion investment in 2016 for regional distribution and operational upgrades. The retailer entered the Mexican market in 1991 with a Sam’s Club in Mexico City. In a statement, Walmart said the new expansion reflects confidence in the region’s economic potential and consumer demand. Globally, Walmart continues to invest aggressively in infrastructure and store development. The company has pledged about $4.5 billion for its Canadian operations and $1.3 billion in Chile to build 70 new stores and a distribution center. In the U.S., Walmart is executing a five-year plan to build or convert more than 150 stores while modernizing 650 existing locations under its “Store of the Future” initiative. Experience Seamless Shipping with Entourage Freight Solutions Entourage Freight Solutions believes in total transparency in the shipping process. That is why we invest in tech solutions that track every shipment extensively, monitor every driver, and extract every bit of efficiency without sacrificing quality. Our state-of-the-art platform utilizes cloud-based GPS tracking to keep you informed, reroutes shipments on the fly to avoid delays, and even responds to real-time market changes to ensure you receive your shipment on time and as soon as possible. Our Services Full Truck Load (FTL): When you need a truck all to yourself. Less-Than-Truckload (LTL): Efficient solutions for multi-stop shipments or combining smaller loads to save on costs. Refrigerated Trucking: Keeping your temperature-sensitive products fresh and safe. Cross-Docking: Strategically located facilities in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, for streamlined consolidation, storage, and distribution. Ready to experience a new level of service and control in your freight shipping? Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.