First Trucks, Now Chassis… The Endangered Species of the Transportation World

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Ari Ashe, JOC.com’s Associate Editor recently published an article on the current standing of chassis in the U.S.  Here is a quick synopsis of what he had to say regarding Trump’s proposed chassis tariff.

With the rising cost of shipping by way of truck, American manufacturers and companies are already having trouble managing the transportation cost of goods.  Adding onto this increasing dilemma, Trump has proposed a 25% tariff on Chinese-made chassis. Adding this tariff onto the cost of chassis would raise their price by thousands of dollars.  This increase in price would affect companies who purchase chassis, and it would also trickle down to negatively impact the shippers and consumers themselves. There is already concern that, like truck drivers, there is a shortage of chassis, and this new state of affairs brought around by the tariff will not help the situation.

It is said in the article that domestic manufacturers of the chassis will not be able to keep up with the demand for their product.  There is also some tension as to who will face the brunt of the cost from the tariff. While some worry about the consumer covering the costs, others think that over time and product quantity, the cost of the tariff will become fairly negligible.  Later in the article, the question of if domestic manufacturers would actually rise to the occasion surfaces. It is possible that they may not do much of anything as of now, since Trump will be finished with his term in just two years. The tariffs he puts in place will possibly be nonexistent under the next president.

This topic is one that constantly shifts--stay tuned for the next few years to see what Trump will push for in terms of tariffs and what will actually be enacted.  Then come 2020, it may all be history. Chassis toe a precarious line at this point, and the looming tariff just may push them over the edge. For now, it is open to interpretation just where the future of chassis will take us--and our products.
 

Interested to learn more?  Read Ashe’s full article here:

https://www.joc.com/trucking-logistics/trump%E2%80%99s-chassis-tariffs-pit-shippers-against-us-manufacturers_20180815.html