President Donald Trump's implementation of tariffs is expected to prolong the existing freight recession in the United States. The trucking industry has been struggling with low rates since the onset of the pandemic. One truck manufacturer anticipates a 10% reduction in the trucking market by the end of the year. The outlook for US trucking remains challenging.

The introduction of tariffs by the Trump administration has added to the uncertainties in the freight sector. Andy Dyer, CEO of AFS Logistics, highlighted how the combination of tariff policies and an unclear economic landscape is creating a sense of uncertainty and caution among businesses.

The ongoing "freight recession" in the US trucking industry began during the COVID-19 era, with a surge in capacity and subsequent decline in demand as interest rates increased and consumer spending decreased. AFS forecasts that truckload rates will remain at historic lows for nine consecutive quarters. While there was a slight temporary increase in the first quarter, it is believed to be a result of customers stockpiling inventory due to tariff concerns.

Traton, a truck manufacturing company, has issued warnings of a shrinking market due to global economic fears, with a potential 10% contraction in the industry by year-end. Concerns about a potential US recession, driven by tariff-induced inflation fears, have led economists to predict a consumer pullback. This uncertainty has led to a negative impact on the financial performance of US freight carriers like JB Hunt.

An industry report by Bank of America reflects these concerns by lowering earnings forecasts for major parcel carriers UPS and FedEx due to tariff implications and adverse weather conditions in the first quarter.