It’s all anyone has been talking about since President Trump won the election: tariffs.
If you’re a CPG shipper trying to keep your head above water with all this tariff talk, this article is for you. We’re breaking down the latest information available on tariffs, how they may impact retailers and CPG brands, and how you can dominate the shelf with a winning logistics strategy (even with all this craziness going on).
What is the Purpose of Tariffs?
Many countries are limited by their natural resources and ability to produce certain goods or services. To overcome those limitations and satisfy the needs of their populations, they can choose to trade with other countries.
However, politics can sometimes get in the way of trading partners staying happy with one another. So, one of the ways governments can deal with trading partners they disagree with is through tariffs. A tariff is a tax imposed by one country on the goods and services imported from another country in order to influence it, raise revenues, or protect competitive advantages.
When President Trump took office in January, imposing tariffs was one of the first things on his agenda. Trump believes these new levies will help the U.S. achieve its key economic and social goals as well as stop illegal border crossings and the flow of fentanyl into the U.S..
2025 Trade Tariffs History & Timeline
The trade wars taking place between the U.S. and 50+ countries have fluctuated almost non-stop over the last few months, making it difficult to know the current tariffs in place at any given time.
Initially, back in February, the U.S. imposed a 25% tariff on all imports from Canada and Mexico and a 10% tariff on all imports from China. This resulted in retaliatory tariffs on the U.S. from all three countries, ranging from 10-25% on specific types of imports. In March, the U.S. then imposed a 25% tariff on all countries exporting steel and aluminum to the U.S..
The months following these initial tariffs have been a whirlwind to say the least, with some tariff amounts fluctuating from 20% up to 145% and then back down to 30%.
At the time of this writing, there is a 90-day pause on most tariffs proposed on liberation day. For the most up-to-date tariff information, please reference this tracker.
How Will These Tariffs Impact the Supply Chain?
While the tariffs aim to encourage domestic production, they will also drive costs up for businesses and consumers. Retailers, like Walmart, say tariffs will force them to raise their prices. Retailers and manufacturers will be forced to adapt to higher import costs while also bracing for retaliatory tariffs, which could make their exports less competitive in key markets.
In addition to inflating the prices Americans pay for a wide array of goods, these tariffs threaten to derail the freight industry’s long-awaited recovery.
Canada, for example, is a major U.S. supplier of steel, aluminum, paper, and plastics. The increased cost of importing these raw materials is expected to escalate production expenses for packaging manufacturers. To mitigate the impact of increased costs, companies may seek alternative suppliers or relocate parts of their operations, resulting in supply chain delays and inefficiencies.
Impacts on LTL Shipping
What many CPG shippers don’t realize is that LTL carriers actually impose tariffs of their own, although these are a bit different than the broader economic tariffs we are discussing in this article. Essentially, there are two types of LTL tariffs: rules tariffs and pricing agreements.
Rules tariffs refer to an individual carrier’s terms and conditions, which allow the carrier to charge a fine to the shipper, should they violate the terms. A pricing agreement refers to the base rate in LTL pricing, which factors in the zip code pair, weight, and freight class of the shipment.
“A lot of LTL carriers are likely updating their own tariffs as they react to the broader economic tariffs right now,” said Curtis Garrett, CEO of rateHERO in Episode 63 of The TRUCK YEAH! Podcast.
Another thing to consider is these tariffs have hit shortly after a period of high investment by carriers. Following Yellow’s closure in July 2023, LTL carriers have spent hundreds of millions of dollars expanding their future networks by buying up the terminals, equipment, and assets Yellow put up for sale when they went bankrupt. Although there is no indication of a Yellow repeat and more LTL carriers closing down, there is a decent possibility of budget cuts and layoffs in the near future.
“The thing that people don’t realize is that the impact of tariffs isn’t just at the border—those increases ripple all the way through the supply chain,” said Garrett.
How Smart CPG Shippers Are Navigating Tariffs
Besides staying updated on trade policies, there are several small tweaks you can make to keep tariffs from throwing off your supply chain.
Maximize Lead Time
The biggest thing CPG shippers can do to thrive during volatile times like these is to provide as much information and lead time as possible to all transportation partners. More lead time translates to more favorable freight rates, efficiency improvements, better carrier arrangements, consistently meeting OTIF requirements, and avoiding hefty retail fines.
Pivot Supply Chain Strategy
The road map to category leadership isn’t shaving pennies off transactional transportation costs. It also isn’t breaking the budget to get product on the shelf come hell or high water. You can’t buy logistics performance in retail, you have to be strategic, adaptable, and proactive. So, what does an intentional logistics strategy look like?
For many brands, increasing order visibility and analyzing performance data is a good starting place. With the price pressures that tariffs introduce, shippers can consolidate shipments or delay LTL orders to manage margins. We’re even seeing customers shift their sourcing to Mexico or Vietnam in response to new tariff structures.
Predict & Avoid Disruptions with Technology
It’s not the trucks that change between brokers — it’s the tools and expertise behind the operation.
Built in-house and improved daily by the Zipline Development Team, KANOPI is our proprietary shipper intelligence tool. Our retail logistics experts leverage KANOPI to optimize client supply chain efficiency, reduce costs, and skyrocket logistics performance.
Tools like KANOPI reveal the inner workings of your supply chain and help identify areas that can be improved to maximize efficiency and cost savings. This can lead to actions as simple as asking for more lead time or adjusting must-arrive-by-dates with retailers. Or it can lead to fundamental shifts in your logistics strategy like consolidating shipments.
Collaborate with a Logistics Partner
Zipline Logistics is the only third-party logistics solutions provider in North America exclusively servicing the consumer-packaged goods sector. Our uniquely qualified carrier network, world-class team of retail transportation experts, and state-of-the-art shipper intelligence tools maximize client revenue and gross margin by eliminating out-of-stocks through optimized, on-time in-full performance.
Our stats:
- 15+ years exclusively serving CPG brands
- 95% on-time in-full (OTIF) average for appointment
- 97% of our shipments are destined to land on a retail shelf
- Customer satisfaction score ranking 5x the industry average
- Top shipping locations: Walmart, Costco, Bath & Body Works, Whole Foods, and Best Buy
We stay up-to-date on all the nitty gritty tariff details, so you don’t have to.
