In this article, we’ll cover the following topics:
- Tariffs: Definition and explanation
- Who pays tariffs
- Why governments levy tariffs
- How tariffs affect the transportation industry
- What U.S. importers can do to protect their supply chains in 2025
If you’re a freight shipper, you’re no stranger to uncertainty. And right now, tariffs are one of the biggest unknowns hanging over the industry.
With the second Trump administration taking shape, there’s widespread speculation about potential tariff increases, new trade restrictions, and shifting supply chain dynamics.
The reality is that no one — shippers, manufacturers, economists, or even policymakers — knows exactly what’s coming next.
That uncertainty makes planning incredibly difficult. Shippers across industries want to know if new tariffs will drive up their costs, if freight capacity will tighten, and whether they should reroute their supply chains or hold tight until the future becomes more clear.
At Anderson Trucking Service (ATS), we understand how high the stakes are. We’ve spent decades helping businesses like yours navigate market shifts, policy changes, and economic disruptions — and we’re here to help you do the same now.
While we can’t predict the future, we can equip you with the knowledge and strategies needed to protect your supply chain.
Even in uncertain times, shippers who stay informed, engaged, and adaptable will be best positioned to weather whatever changes come next. Let’s dive in.
What Are Tariffs?
A tariff is a tax imposed by a nation’s government on imported goods. Think of it as a “point-of-entry tax” placed on commodities upon entering a country, similar to a “point–of-sale” tax placed on those same commodities at the cash register.
When a government imposes a tariff, there are two main levers that can be used: The goods being taxed and the percentage or amount of the tax.
Tariffs may be placed on all goods coming from a specific country, or on specific commodity types regardless of country of origin.
In terms of cost, tariffs are often expressed as a percentage of the commercial value of a good, but can also be a fixed amount determined by the quantity of goods being imported.
Who Pays Tariffs?
Importers pay tariffs to their country’s government; tariffs are not paid by countries themselves.
While importer companies are responsible for paying the tariffs on any affected goods upon entry to the country in question, economists and researchers agree that ultimately, consumers often end up footing the bill for tariffs, as the costs of those tariffs are generally added to the cost of the affected products.
Let’s walk through an example of how this principle works in practice:
Imagine a company that sells smartphones in the United States. Its best-selling model is manufactured in China for a commercial value of $500 at the time of import. The importer then retails that smartphone for $700 in the U.S. — a $200 profit margin.
Now imagine the U.S. places a tariff on all goods imported from China at a rate of 10 percent of the commercial cost of the goods. Once the smartphone enters the U.S. from China, the company must pay the 10 percent tariff on the import’s commercial value, driving its costs up by $50 per phone.
The importer doesn’t want to see a decrease in profits due to this additional expense, so instead, it covers the cost by passing it on to the consumer in the form of higher retail prices.
That $700 smartphone now costs $750 for U.S. consumers to purchase under this hypothetical tariff. So, while the manufacturer pays the tariff up front, it’s the customer who essentially reimburses them for those costs — thus maintaining their profit margin of $200.
Why Do Governments Levy Tariffs?
Governments levy tariffs for a variety of reasons, including to boost domestic industry. In fact, the original intent of tariffs was to protect certain domestic sectors from foreign competition and stimulate longer-term economic growth.
A great example of this concept in action are the recent U.S. tariffs on solar panels made in southeastern Asia.
China subsidizes its solar panel production, making it impossible for American manufacturers to compete with their exceptionally low cost to consumers. By imposing tariffs on the panels, the U.S. can level the playing field and support domestic production.
However, this strategy only works when applied to specific goods that can be competitively made or sourced domestically.
When imposed on essential (yet costly-to-produce) items like crude petroleum, aluminum, machinery, and certain produce, tariffs can raise costs for businesses and consumers without boosting gross domestic product (GDP) or global competitiveness.
Blanket tariffs on all imports from certain countries can be likewise problematic. Both specific and blanket tariffs have the potential to cause retaliatory tariffs, triggering a "trade war."
Trade wars are a reflection of how the use of tariffs has changed over time, shifting from a defensive measure to a tool of international trade relations. As the Fordham Journal of Corporate & Financial Law writes, as "new sources of revenue and the comparative strength of American manufacturing have mooted the historical justifications" for tariffs, they instead became a "tool of trade policy in the modern global economy."
The bottom line is this: In the early days of the American economy, tariffs were used to generate revenue, protect industries, and prevent unfair trade practices. But in today's global economic and political climate, companies and consumers are at high risk of bearing the cost without reaping offsetting benefits.
How Do Tariffs Affect the Transportation Industry?
Tariffs may mean shippers pay increased transportation costs in the short-term as the market adjusts to its “new normal.” Because tariffs lead to an increased cost of affected goods, they can have a ripple effect across the marketplace — including within the transportation industry.
Tariffs trigger a cost “trickle-down.” Importers, facing higher costs once their goods hit U.S. soil, may react by shifting manufacturing to other countries, cutting their workforce, or sourcing cheaper materials — all of which is disruptive to supply chains.
One common shipper reaction to tariffs is a practice called “frontloading,” in which importer companies rush to import as much stock as possible before the tariffs take effect.
While this temporarily delays price increases for consumers, it also drives up short-term shipping demand as well as shipping and storage costs. And once stockpiles run out, companies must raise prices or cut costs elsewhere.
Of course, the buck doesn’t stop at the manufacturer. Retailers adjust inventory levels, and consumers respond by switching to cheaper alternatives or buying less.
These changes in behavior inherently impact supply and demand for transportation, which then shifts the demand for shipping vessels and trucks accordingly.
You may find it more difficult to find truck capacity after a tariff is enacted — and more expensive to secure that capacity if it’s available in your area.
What Can U.S. Importers Do to Protect Their Supply Chains in 2025?
Until the outstanding questions about what tariffs will be levied, at what level, and when they will go into effect are answered, U.S. importers can protect their supply chains best by staying informed, engaged, and nimble.
As the U.S. enters its first few months of the second Trump administration, there are many unanswered questions about what to expect regarding tariffs in the coming year and beyond.
You’re not alone in feeling uncertain, and you’re not the only one without answers. The truth is that right now, no one has answers — including industry experts like us.
We know firsthand how hard it is to feel like you, your company, and your customers are stuck in a holding pattern. You can rest assured that the entire industry — the entire world, in many regards — shares that anxiety with you.
Staying informed, engaged, and nimble during this time is the best way to prepare your supply chain for whatever comes next. Next, let's talk about strategies to achieve those ends.
How Can Importers Stay Informed?
Importers can stay informed about the 2025 tariffs and their impact by seeking out neutral, fact-based reporting, monitoring the market, and maintaining open, clear communication with their supply chain points of contact and transportation providers.
Knowledge is power. On a macro scale, staying informed on the details of any proposed or active tariffs will help you understand whether your business may be affected and in what ways.
Seek out neutral, fact-based reporting on the topic regularly to ensure you’re working with the most up-to-date information. The Associated Press and Reuters are good sources to start with.
To safeguard your supply chain from tariff impacts, stay informed on supply and demand trends, monitor inventory levels, and assess how tariffs could affect your commodity costs. Regular reviews will help you gauge potential risks if new or expanded tariffs are introduced.
It’s also critical that you and all your partners along your supply chain — including your transportation providers — stay in communication during this time. Circumstances may change quickly and unexpectedly, and keeping each other informed on relevant business development is key to limiting disruptions and delays.
Strive to maintain open, clear lines of communication with your supply chain points of contact as you navigate the news (and its impact on your business). By giving equal weight to both the economic facts and the realities of your business, you can position yourself to make the best possible decision on how to proceed.
How Can Importers Stay Engaged?
If you have feedback or questions about the potential impact of tariffs on your business and others like it, reaching out to your elected officials is the best way to get in touch and stay engaged.
- Call your elected officials. Government websites for the House and the Senate have phone numbers published on their homepages.
- Send an email. If you’d rather contact officials in writing, most senators have web contact forms available on their websites, as do many House representatives.
- Get social. Social media has become a useful tool for finding and organizing community conversations. Keep a lookout for listening sessions and “town hall”-style events with your elected officials, and consider attending to stay informed.
No matter which method you prefer to stay informed, remember to consume media with caution. Some media outlets may report with bias on this issue, so use discernment when seeking out more information.
Of course, your trusted transportation providers are also an excellent resource. As tariff-related news and events unfold, feel free to reach out to any of the experts here at ATS should you have any questions about the potential impact on your transportation services or supply chain.
How Can Importers Stay Nimble?
Importers can stay nimble in a chaotic global trade landscape by performing a multi-point assessment of their supply chain's agility and tailoring an efficiency improvement strategy to the more sluggish points.
Whether the tariffs proposed in early 2025 come to pass or not, it’s never a bad idea to assess the agility of your supply chain and develop proactive contingency plans.
Supply chain agility is the ability to rapidly adapt and respond to disruptions, demand fluctuations, and market changes by leveraging flexible sourcing, production, logistics, and inventory strategies.
You can evaluate the agility of your own supply chain by examining a variety of factors, including:
- Lead Time Variability – Track how long it takes for goods to move from your suppliers’ facilities to their final destination. By identifying patterns of delays, you can determine how quickly your supply chain adapts to disruption.
- Supplier Diversification – Does your company have alternative suppliers or sourcing regions in case of disruptions? A supply chain reliant on a single overseas supplier or port is more vulnerable to delays.
- Real-Time Visibility & Data Analytics – Use tracking technology and data analysis to monitor shipments, anticipate bottlenecks, and respond proactively to issues like port congestion, customs delays, or weather-related disruptions.
- Transportation Flexibility – Can your transportation providers shift between different modes of transportation (air, ocean, rail, truck) easily? Can they leverage expedited shipping when necessary? The more versatile and experienced your carriers, the more nimble the supply chain overall.
RELATED: Download Our Free Transportation Provider Scorecard!
- Inventory Buffering & Distribution Strategy – Determine if stock levels at key distribution points are sufficient to mitigate delays, or if a more regionalized distribution model could improve responsiveness.
- Customs & Compliance Efficiency – Analyze how smoothly goods clear U.S. Customs. Consider whether trade compliance strategies, like using Free Trade Zones (FTZs) or duty deferral programs, could improve supply chain fluidity.
- Supplier & Logistics Partner Responsiveness – How quickly do your suppliers and logistics providers respond to last-minute changes, rerouting requests, or sudden shifts in demand? Their reaction times can make or break urgent pivots.
Now that you’ve collected all that data about your supply chain, here’s the tricky part: Tariffs will affect your business differently than your neighbor’s business, or a business in a different part of the country, or a business manufacturing a different commodity.
That means we can’t give you a one-size-fits-all contingency plan — your strategy must be specific to the tariffs in question and tailored to your company, commodity, and trade routes.
Without knowing the details of what tariffs are coming and when, it’s hard to build an effective strategy. But that doesn’t mean you can’t set yourself up for success in the meantime.
Start by comparing the insights from your agility review to your business’s goals and needs. If there are areas where agility gaps overlap with goals, take note: These are pain points to prioritize.
Strengthening the weak points in your supply chain now will enhance your ability to respond swiftly when tariffs are officially enacted, and position you to develop a more precise and effective contingency plan.
As we learned during the prolonged “unprecedented times” of the COVID-19 pandemic, uncertain times call for nimble businesses. While the international trade landscape evolves throughout the year, you can continually fine-tune your strategy based on emerging policies and market conditions, ensuring your business remains agile and well-prepared.
Beyond Tariffs: Keep Your Freight Moving Smoothly
Tariffs are a complex element of global trade, with ripple effects that reach across geographic borders and industries. While they are often implemented to generate revenue or protect domestic industries, there can be significant unintended consequences — most notably, increased costs for businesses and consumers alike.
For U.S. shippers, navigating the uncertainty surrounding tariffs in 2025 requires patience and proactivity. Staying informed about potential policy changes, engaging with industry stakeholders and policymakers, and maintaining a nimble supply chain are all essential strategies for mitigating risk.
By closely monitoring supply and demand trends, maintaining open communication with your transportation providers, and developing contingency plans when possible, you can better position your business to adapt to the evolving trade landscape.
Of course, tariffs are just one piece of the puzzle when it comes to importing freight into the U.S. Understanding the customs clearance process is equally important for ensuring smooth and cost-effective international shipping.
To learn more about how to navigate customs procedures, duties, and compliance requirements, check out our article on the Customs Clearance Process When Importing Freight Into the U.S.
It breaks the process down step by step, so you can feel confident about every stage of your cross-border and international freight movements.
