Trucking in the Second Era of Trump
Anyone who has been paying attention to our reporting of the news, especially in regard to regulations, likely noticed that we ended a good number of articles with “it will be interesting to see how the 2024 election plays out and if there is a change of party in the White House, how that will impact trucking.”
Well, we now have our answer. Donald Trump pulled off a Grover Cleveland and will be the 47th president of the United States.
What does this mean for the trucking industry? We can think of two immediate implications for his second term.
Drill, Baby, Drill
The most immediate and obvious promise that Trump made on the campaign trail that will impact the trucking industry is the increase in domestic production of fossil fuels.
During the previous Trump Administration, the United States was pumping so much oil that it wound up becoming a net exporter of energy, but recent events such as the war in Ukraine and a pessimistic outlook towards fossil fuels by the Biden Administration have led to the prices of diesel and other fuels skyrocketing.
With Trump opening up the floodgates yet again, the laws of supply and demand dictate that the cost per mile of operating a truck will go down as a direct result.
Tariffs
Tariffs intentionally increase the price of foreign goods to give domestic goods a competitive advantage. This means two things:
- An increase in production in the United States should a company find it more cost-effective to produce goods for Americans by Americans.
- Decreased port and border activity.
The first suggests that the total time for delivery trips will decrease, as items needing to be delivered to Kansas will be built closer to the Sunflower State rather than thousands of miles away.
In recent news, ports have been doing absolutely gangbusters on economic activity, arguably to the point where there is not enough capacity to handle all of the imports, so in a twisted kind of way, this is a good thing for the American trucker as the time to wait to get a cargo unit for delivery will drop.
Conclusion
Ultimately, the switch to a Trump presidency (as well as a red House and Senate) may prove to be a boon to the trucking industry in the states, as the economy shifts into overdrive with more trucker-friendly policies.
We will be sure to keep you updated on any developments.
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