Fleet costs for construction businesses are about to change in a big way. A 25% tariff on vehicle imports from Canada and Mexico, effective February 4, 2025, is expected to drive up prices, disrupt supply chains, and make it harder for small and mid-sized construction companies to maintain or expand their fleets. These new trade tariffs could have long-term financial and operational consequences for businesses that rely on work trucks and vans.
Here’s what’s happening, how it could impact your fleet, and what steps you can take to prepare.
For decades, automakers in the U.S., Canada, and Mexico have relied on an integrated supply chain to keep production costs down and vehicle availability steady. The new tariffs, however, threaten to break that balance, forcing automakers to either absorb higher costs or pass them along to buyers—including construction companies that depend on fleet vehicles.
Industry analysts estimate that new vehicle prices could increase by approximately $3,000 per unit, making fleet expansion and replacement more expensive. Additionally, delays in vehicle availability could impact businesses needing to replace aging or damaged work trucks.
For construction businesses that rely on fleets of light-duty trucks, work vans, and service vehicles, these tariffs could bring a series of challenges:
1. Higher Vehicle Acquisition Costs
2. Rising Maintenance and Repair Expenses
3. Potential Operational Delays
While these changes may create uncertainty, proactive fleet planning can help businesses stay ahead of rising costs and potential delays.
1. Reassess Fleet Budgets
2. Diversify Vehicle and Parts Suppliers
3. Prioritize Preventive Maintenance
4. Stay Engaged with Industry Advocacy
The new tariffs could significantly impact fleet operations, raising costs and creating delays. But by proactively adjusting budgets, strengthening supplier relationships, and refining maintenance strategies, construction businesses can minimize disruptions and keep their vehicles—and their operations—running smoothly.
For businesses managing fleet vehicles, now is the time to plan ahead.