[Freight Weekly] Another Trump Era Begins - For Better or Worse?

Donald Trump is back, and members of the industry are either really freaked out or super thrilled. During his inauguration, the newly-minted 47th president provided an audience of billionaires — a net worth of about $1.35 trillion, according to a Forbes analysis — and his political acolytes his vision for putting “America first.” Here are the key elements of that plan that Boxy is tracking and the potential implications for supply chains and freight:

• Trump was inaugurated on MLK Jr. Day, Jan. 20, and quickly issued scores of controversial executive orders that undid Joe Biden’s trademark policies and foreign relations accomplishments. For example, Trump withdrew the United States from the Paris Climate Agreement, which targets net-zero carbon by 2050.

• Another executive order on immigration included ordering the U.S. military to send a detachment of roughly 1,500 servicemembers to further militarize the Southern border it shares with Mexico. Trump ordered the border wall to be resumed, further heightening tensions with our country’s trade ally to the south.

• On tariffs, Trump didn’t deliver on his “day-one” tariff levy on Canada, Mexico, or China. Instead, as the new administration’s strategy is being formed, tariffs have been put on the back burner until February 1. Trump disclosed to news media that he intends to levy a 10 percent tariff on China and 25 percent on Canada and Mexico. This is a flagrant dismissal of his recognition of the landmark United States-Canada-Mexico Agreement, which replaced NAFTA, which he brokered during his first administration. He took on a hardline at Davos.

• National leaders, regulators, financial executives, and business tycoons were alarmed at Trump’s comments during the World Economic Forum in Davos.

• He urged companies to invest in the United States or face tariffs if they don’t.

• Trump also seems to be pressuring Putin to end the war in Ukraine, or Russia will be sanctioned further and face, you guessed it, tariffs on Russian-made products.

• Many people are on edge, considering Trump’s extreme protectionist stance. Despite the fact that tariffs have been proven to harm domestic consumers and economies, Trump’s America First agenda is in full swing. It clearly focuses on bullying trade partners and allies into falling in line or being further isolated.

Bottom line: It remains unclear the impact Trump’s tariffs will have on the U.S. economy and the freight industry as a whole. But the evidence circulating, especially experience from his first tenure at the White House, seems to suggest that it will do far more harm.

MORE: “Trump's 'External Revenue Service' Is a Public Relations Effort. It Won't Change How Tariffs Work.” - Reason.com

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📰OTHER NEWS IN FREIGHT📰

🛬Secretary of State Rubio jets to Panama on his first official trip: Marco Rubio, once a critic of Donald Trump but now his Secretary of State, is Panama-bound. There isn’t any indication that Rubio is going down there with the White House black Amex card to buy up the canal, but his presence does punctuate weeks of riling his boss has thrust on Panama. There is no legal basis for Donald Trump’s administration to say they want to “reclaim” and “purchase” the Panama Canal, which sovereign government officials now administer. This is noteworthy because Rubio can either make or break the relationship with Panama, which controls one of the most vital trade routes in the Western world.

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