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What President Trump Taking Office Means for Logistics

January 22, 2025

As promised, President Trump signed over 200 executive actions just hours after his inauguration January 20, 2025. What does this mean for the logistics industry? We’ll take a look at more in the coming weeks but let’s start with 3.

  1. Tariffs
  2. Energy Independence
  3. Jobs

President Donald Trump’s “America First” agenda has four main categories. The logistics industry and these three points fall under the Make America Affordable and Energy Dominant Again header. For the logistics sector, Trump’s executive orders have significant, far-reaching effects on supply chains, transportation, and the movement of goods. Here’s a closer look at the key executive orders and how they are expected to impact the logistics industry.

1. Executive Orders on Tariffs: Protecting U.S. Industry

One of the most defining aspects of Trump’s economic policy is his aggressive stance on tariffs. The administration plans to enact several tariffs on foreign goods, with a focus on China, and the European Union. The main aim of these tariffs was to reduce the U.S. trade deficit and encourage American manufacturing. This is a good thing for domestic logistics. More US made goods means more national shipping.

Impact on the Logistics Industry:

  • Increased Shipping Costs: In 2018 the tariffs imposed by President Trump led to higher costs for raw materials, parts, and finished goods. This, in turn, affected logistics companies that had to deal with increased transportation costs, especially for goods coming from countries subject to these tariffs. This time around Trump has plans to move more manufacturing inside the United States which should lead to less hikes on international shipping costs.
  • Supply Chain Adjustments: During the last term for President Trump, companies had to adapt to the higher costs of imported goods, potentially shifting sourcing strategies and even rerouting shipments to avoid higher tariffs on certain goods. During this term we can expect increased costs initially but expect to see costs level off as manufacturing incentives fall into place and domestic goods are more readily available.
  • Trade Wars and Uncertainty: The trade conflict created uncertainty in global supply chains, leading to fluctuations in freight volumes and unpredictable demand for shipping services. This is where your logistics partnerships play a pivotal role. Companies must stay on top of the changes and be agile – monitoring tariff developments closely and being prepared to pivot. This can take up a lot of precious corporate resources, or you can outsource logistics and freight handling to a third-party logistics company who will have a constant pulse on the market.

 

2. Executive Orders on Energy Independence: Strengthening Domestic Resources

Trump’s executive orders on energy are aimed at reducing the U.S.’s dependence on foreign oil, natural gas, and energy imports. The administration prioritizes energy exploration, deregulation of the energy sector, and the expansion of fossil fuel industries. Through various executive orders, Trump seeks to expedite energy projects like pipelines, promote coal and natural gas, and roll back environmental restrictions.

Impact on the Logistics Industry:

  • Increased Demand for Energy Transport: In the last 4-year term with President Trump in office the U.S. expanded its domestic energy production, particularly oil and natural gas and the demand for transportation of these resources surged. The logistics industry saw growth in the movement of crude oil by rail, truck, and pipeline. This translated into a boom for freight services related to energy, particularly for companies involved in transporting hazardous materials and fuel. It is always wise to learn from the past as this could be expected in the coming term.
  • Infrastructure Development: With the expansion of energy infrastructure, logistics companies had to adjust to new routes, particularly in remote or difficult-to-reach areas. Pipelines and rail lines became central to the transportation of crude oil and other energy resources. The demand for port and rail drayage was up, as most are anticipating a similar reaction during this next term with President Trump.
  • Fuel Price Stability: Last time around, the emphasis on domestic energy production helped stabilize fuel prices, which is critical for the logistics sector that heavily depends on fuel costs for transportation. This is the main focus of the Trump administration in 2025 and there is no reason to believe fuel prices will not go down again. Lower and more stable fuel prices translates into more predictable operational costs for shipping and trucking companies and lower costs to drivers and freight asset based companies.

 

3. Executive Orders on Job Creation: Revitalizing U.S. Manufacturing and Employment

Lastly, let’s look at the expected impact of executive orders and jobs. In his last term Trump placed a strong emphasis on revitalizing U.S. manufacturing and bringing jobs back to America. His executive orders aim to bolster job creation in industries ranging from steel to manufacturing to transportation. We expect similar programs in this term as last term’s Buy American, Hire American tax incentives.

 

Impact on the Logistics Industry:

  • Re-shoring of Manufacturing: One of the key aspects of Trump’s job creation strategy was encouraging the re-shoring of manufacturing. While logistics companies can be expected to benefit from increased shipments, they will also need to adjust to the complexities of re-shoring initiatives, including new supply chains and local delivery networks for goods that had previously been imported.
  • Shift in Domestic Freight Patterns: As more companies bring manufacturing back to the U.S., the demand for domestic freight will undoubtedly increase. This shift means a greater focus on regional transportation and a boost for trucking, rail, and last-mile delivery services as goods are produced locally rather than overseas.
  • Workforce Implications: Trump’s policies on job creation can be expected to impact the logistics workforce. The focus on creating blue-collar jobs and supporting sectors like manufacturing and construction should lead to increased demand for skilled workers in transportation, warehousing, and distribution. The logistics industry can expect to see an increase in demand, but not without the challenge of addressing the evolving needs of a reshoring economy.

 

Overall Impact on the U.S. Logistics Industry

Trump’s executive orders on tariffs, energy independence, and job creation will likely affect the logistics industry in profound ways. Overall, if initiatives are put in place for long term changes in the United States that can withstand changes in economic power, the outlook is positive for manufacturing and logistics. There will be challenges for sure, as there are with any large scale changes.

  • Increased Complexity in Global Supply Chains: Tariffs and trade policies will add complexity to the global supply chain, with companies navigating the evolving landscape of duties, trade restrictions, and shifting trade patterns.
  • Stronger Domestic Logistics Networks: With a focus on U.S. manufacturing and energy, the domestic logistics networks will become more important than ever. From transportation of oil and gas to moving products made in U.S. factories, the need for robust, flexible supply chains will be ever growing.
  • Volatility and Uncertainty: While the overall aim of Trump’s policies are to create a more self-reliant economy, they also introduce initial volatility into the logistics sector. Freight volumes will fluctuate in response to changing trade policies, and logistics companies will need to remain agile and responsive to shifting demands. Companies who previously handled their own logistics and freight will likely find greater value in utilizing 3PLs to handle the changing market.

 

Look for more changes coming, and coming fast as President Trump is hitting the ground running. It’s no secret he sees these next four years as a sprint and he has been training hard in the off-season. The executive orders signed by President Trump should have a lasting influence on the logistics landscape for transportation and supply chain management. As the industry moves forward, the legacy of these executive orders will continue to influence strategic decisions and operational dynamics. VIEWDIA is here to help you navigate that landscape and be your go-to 3PL provider.

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