businesses across various industries are preparing for potential shifts in policy. For truckers, these changes could bring new opportunities and challenges. At MyCorporation, we frequently help truckers form LLC’s to protect their personal assets and navigate the paperwork involved in running a successful business. So for everyone we connect with in the trucking industry, this one’s for you!

Environmental Regulation

Trump’s stance towards environmental regulations for both consumer and commercial vehicles has always been pro-business. While Democrats have typically pushed for electric vehicle mandates and legislation to curb emissions, Republicans, especially Trump, have pushed for more business-friendly deregulation to give businesses more flexibility and in turn profitability.

In his term as President, Biden rolled out significant emissions standards that were ill-received by the majority of the trucking community for its harsh stance against existing trucking lines. In contrast, after Trump’s election victory, the President and CEO of the American Trucking Industry Chris Spear called for a uniting of the industry to fight for pro-trucking policies under the new administration.

On top of the Biden administration’s harsher environmental regulatory stance, many in the trucking industry were saying that measures (especially electric vehicle mandates rolled out in certain parts of the country) would make trucking as an industry financially unsustainable for many companies. In theory it would be great to have all trucking companies running Tesla commercial trucks, but the cost of purchasing, running, and maintaining these vehicles would be significantly higher than existing gas-powered vehicles.

In theory, a lot of trucking companies would be behind electric models if they were able to not take significant hits to their overall profitability. But much like in the consumer automotive markets, most families that are looking to purchase a used car for $10,000-$20,000 simply cannot justify paying $40,000+ in an effort to save the planet. The balance between environmental responsibility and working to create sustainable economic solutions for both consumers and trucking companies is a spectrum without much middle ground, at least as it would seem under current conditions.

Import Taxes

New tariffs are expected under the new Trump administration to decrease the reliance on foreign manufacturing and production and increase spending on domestic manufacturing and American-made products.

Trump has suggested a 10-20% tariff across the board, with certain industries receiving tariffs closer to 100% (i.e. Mexico automotive imports). In his campaign speeches, Trump specifically cited areas like Detroit that have been hit hard with layoffs due to a significant increase in automotive imports. Detroit and the automotive industry in general have been an indicator of economic policy across the board, since (with the exception of aerospace and defense contractors), a significant percentage of high ticket consumer spending goes towards automotive purchases. 

As a side note, even though this represents the consumer automotive industry versus the commercial sector, companies like Toyota that have been manufacturing models like their new Tacoma in Mexico may be incentivized through these new import taxes to move production of their main trucks to exclusively U.S. automotive manufacturing sites.

Higher Consumer Spending

With lower regulation and lower overall prices (assuming inflation and economic conditions remain similar to Trump’s first term as President), consumer spending is likely to go up. As we discussed in our previous article, lower rates means lower cost of borrowing which usually translates to higher overall consumer spending in the economy. People can start buying nonessentials like boats, higher quality foods, vacations, and vacation homes among many other things.

Higher consumer spending means that businesses can focus more reinvesting back into their business since an increase in revenue usually means higher profits and more they can invest back into their businesses. Higher consumer spending translates into a higher margin for error, and you as an entrepreneur can focus on testing more different products and services that may be valuable to your target market without necessarily having to see a direct return from those tests.

And usually when businesses are able to focus more on research and development in this way, they are able to innovate and provide something that may not have been considered an option before. Think Henry Ford: “If I had asked people what they wanted, they would have said faster horses”

Spending centers like Costco start to see consumers easily spend $500-1000 a trip instead of holding back and only buying essentials. Some of you may spend that much at Costco regardless of what the economy looks like, but we digress…

Greater Business Spending

All of this proposed deregulation also means more opportunities for businesses to expand and grow. When businesses bring in more money and do it more efficiently they have more money to spend, and the smart businesses will use this time to reinvest back into themselves, their people, their product, and their process.

Greater business spending means more money on advertising. It means hiring additional staff. It means planning whole micro-economies around providing more of their product or service. The more money businesses spend translates into more opportunities for non-business owners as well. A better economy translates into more products that need to be produced and more trucks that need to ship that product all around the U.S.

For trucking companies it means more hours on the road, more contracts with manufacturers, and more opportunities to take over market share. It means more competition, but it also means “more space in the ocean to swim.” 

Conclusion

A Trump presidency shows many signs of spurring domestic economic growth, bringing manufacturing jobs back into the country, increasing both consumer and business spending, and reducing reliance on foreign made products. All of these signs trend towards better economic opportunity for trucking businesses to expand and take advantage of the next four years if they position themselves appropriately.

Weigh all of these factors, look at legislation that is headed through Congress, and pay attention to other economic trends to make sure your trucking business makes the most of this Trump presidency.