Forwarders’ Forum: Tariffs, realized and potential, threaten U.S. interests

Looking at the White House’s selected endorsements for the latest Section 232 tariffs on steel and aluminum entering the United States, talk in our industry has lately centered on how the influx of tariffs is going to change the landscape of international trade in 2025. [caption id="attachment_57149008" align="alignright" width="300"] Brandon Fried, Executive Director of the U.S. Airforwarders Association[/caption] President Donald Trump on Feb. 10 restored a 25% tariff on steel imports and elevated the tariff on aluminum imports to 25%. The president imposed a 10% tariff on all goods from China on Feb. 4 and has threatened to impose 25% tariffs on goods from Mexico and Canada. I have had many people asking me how Airforwarders Association members have been navigating the waters recently, with the potential of tariffs rocking the boat every two weeks. We are still waiting for the outcome of the Canada, Mexico and China discussion so we can know what we will face in the short term. But, since January, the new administration has explained the use of tariffs in a variety of ways: To negotiate with Colombia; To prevent fentanyl from crossing the borders; To limit criminality; and To deal with illegal migration. We want of course to promote U.S. manufacturing. The U.S. trade deficit in goods in 2023 was the world’s largest at more than $1 trillion. Imposing ad hoc tariffs without consulting the logistics sector would impact exports as much as imports. If trade actions start provoking reciprocal tariffs, how much of a say will the U.S. have to negotiate once the political decisions have been made? Jeopardizing economic growth The one thing that no one wants in our industry is to lose business and jeopardize economic growth with volatility in the U.S. supply chain. It is one thing to change a unilateral tariff on home soil, but once reciprocal tariffs have been announced and they are bilateral, it will be left to the negotiating table, which can be a time-consuming process. If the original objective of revitalizing the domestic steel and aluminum industries and achieving sustainable capacity utilization of at least 80% stands behind the Section 232 tariffs, then we must ensure our forwarder members are also able to maintain profitable trade lanes with international markets. Freight forwarders need stability with tariffs to achieve this. There will be a lot of work from stakeholders up and down the supply chain to adapt to change in a financially responsible way. This will inevitably be on the tips of most attendees’ tongues at next week’s AirCargo Conference 2025 in Dallas. We need some degree of stability from the White House to make sure the current and future tariffs do benefit the U.S. economy by boosting manufacturers, shippers, forwarders and carriers, without handicapping our ability to reverse the import-export deficit. Brandon Fried is the executive director of the Airforwarders Association. Register now for Cargo Facts' essential regional events for industry stakeholders: Cargo Facts Asia 2025 on March 24-26 at the W Shanghai in China; and Cargo Facts EMEA 2025 on May 6-8 at the Shangri-La Bosphorus in Turkey.

Forwarders’ Forum: Tariffs, realized and potential, threaten U.S. interests

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