Cross-border freight transportation faces sharp decline

Cross-border freight transportation drops driven by tariffs

It is common to see declines in cross-border freight transportation in April; however, this year’s drop has set a new record not seen since 2020. The sharp decrease in freight movement between Mexico, Canada, and the United States coincides with the imposition of global tariffs and the intensifying U.S.–China trade war.

In January, cross-border truck freight saw a surge as many companies advanced purchases to get ahead of the tariffs. However, by April, activity had slowed significantly, resulting in a 12% decline, according to Land Line data.

That same month, the cross-border freight landscape changed dramatically. In April, President Donald Trump announced a 10% general tariff on all countries, along with higher reciprocal tariffs for certain nations. On April 3, a 25% tax on automobiles took effect, and on April 10, the trade war officially began, raising tariffs on Chinese products to as high as 145%.

The Trucking Conditions Index, developed by Freight Transportation Research Associates (FTR), returned to negative territory in April after a brief improvement in March. The index considers factors such as freight volumes, rates, fleet capacity, fuel prices, and financing conditions. A negative score indicates an unfavorable environment for the sector.

The vice president of trucking at FTR stated that conditions remained relatively neutral from February to April, despite the downturn. However, he warned that tariffs have completely altered the dynamics of the freight market.