Trump’s Second Term: What Freight Forwarders Need to Know
The return of Trump-era trade policies is here, bringing a wave of changes that could reshape global logistics. With President Trump’s second term now underway, new tariffs are already in the spotlight:
- 25% on imports from Canada and Mexico starting Feb 1
- 10% on Chinese goods, with up to 60% on key products like electronics and machinery.
This is a pivotal moment for freight forwarders that could bring higher costs, port congestion, and tighter capacity.
Lessons from Trump’s First Term
Major Tariffs = Supply Chain Stress
Trump’s first term saw $550 billion in tariffs on Chinese imports, plus steel (25%) and aluminum (10%). The rush to ship goods ahead of these being implemented overwhelmed ports, strained networks and drove up freight costs.
Sourcing Shifted
To avoid Chinese tariffs, many companies turned to alternative sourcing options in India and Southeast Asian countries like Vietnam. This required forwarders to adapt to unfamiliar trade routes and customs processes.
Flexibility Became Critical
Forwarders who invested in scalable networks and smarter tools managed to navigate the chaos, while those relying on outdated processes struggled to keep up.
What’s Next and How to Stay Ahead
The next wave of tariffs is set to challenge logistics providers, but it may also offer opportunities for those who can quickly adapt. Here’s what to prepare for:
Congestion Could Return
As businesses rush to move goods before tariffs take effect, overcrowded ports and delays are likely, pushing freight rates higher. Be prepared for tight timelines and increased demand for efficient operations.
Nearshoring Growth
With production shifting to Mexico and Central America, demand for cross-border logistics expertise is expected to rise. Forwarders with the knowledge and tools to navigate these markets will have a competitive edge.
How to Stay Ahead
- Diversify Your Carrier Network: Secure partnerships now to handle capacity surges and avoid last-minute bottlenecks.
- Invest in Technology: AI-powered tools can help you optimize routes, provide real-time tracking, manage compliance, and keep shipments moving seamlessly.
- Guide Your Clients: Offer advice on tariff mitigation and sourcing strategies to strengthen relationships and stand out from competitors.
Navigate the New Trade Era
Our AI-powered tools are built for SMB freight forwarders like you—helping you adapt to disruptions, optimize operations, and deliver for your clients.
About Starboard
Our flagship products, Starboard OS and Starboard Quote Tools, harness the power of AI and live API integrations to help freight forwarders win more business and deliver best-in-class shipment execution.