Trade tensions trigger layoffs in California, but Texas trucking firms hold firm amid turmoil, for now.
Trade tensions trigger layoffs in California, but Texas trucking firms hold firm amid turmoil, for now.
Trade tensions trigger layoffs in California, but Texas trucking firms hold firm amid turmoil, for now.
DALLAS — Trade tensions and rising tariffs are causing ripples across the U.S. trucking industry—and in some states, it’s already hitting hard.
Outside Texas, layoffs are mounting in states like California, where there is a slowdown of goods coming into ports. But John Esparza, President of the Texas Trucking Association, believes the Lone Star State isn’t there yet.
“Perhaps some [companies] have looked at layoffs ahead of what’s coming, but I don’t see that happening in full scale,” he says.
Texas is home to 163,340 trucking companies, and for now, the industry is holding firm. The vast majority of those firms are single operators. But the outlook could change. “The longer the tariffs last, the more difficult that’s going to be on freight companies,” Esparza warns.
California has already seen major freight drops, while Texas vendors are moving fast to beat potential delays. Jim Grundy, who runs a Fort Worth company with 150 trucks called Sisu Energy LLC, says, “They’ve increased the amount of goods over the last 60 days out of fear of any delays of products.”
Still, Grundy isn’t sounding alarms just yet as the U.S.-China trade war escalates. “Neither economy wants to go through this,” Grundy said. “The people are the ones who wind up paying for this, whether it’s loss of jobs or increased good prices.”
Despite the uncertainty, there’s confidence that Texas trucking will weather the storm. “I think our industry is very well suited to adjust over time,” Esparza said.
But with trade talks stalled and tariff tensions high, the road ahead could still get bumpy.
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