Recent U.S. tariff changes, effective Nov. 1, are impacting Central Valley businesses that rely on heavy trucks, equipment, and tight-margin logistics operations. Fleet operators, logistics providers, and transport-dependent businesses should prepare for rising costs and operational challenges.
At DDC, we’ve supported businesses in agriculture, logistics, construction, and fleet services for decades. Here’s how these changes are impacting your business this year and next steps.
What Changed
- A 25% tariff on imported medium- and heavy-duty trucks (Class 3–8) took effect on Nov. 1.
- A 10% duty on imported buses and certain other large-vehicle classes is now in effect.
- Tariffs on truck components and parts that support heavy vehicles are also increasing.
Together, these changes can significantly increase the cost of new trucks, replacement parts, and fleet maintenance for businesses that rely on imports.
Impacts for Central Valley Businesses
Higher Equipment Costs
Purchasing imported heavy trucks or trailers now carries additional cost layers due to tariffs. That may squeeze budgets or force firms to reconsider the timing of purchases.
Replacement & Parts Challenges
Parts often cross borders or include foreign-made components. A duty on imports raises repair and maintenance expenses, potentially delaying sourcing.
Operational & Cash Flow Risks
Fleet operators may delay equipment replacement, incur higher maintenance costs, or face margin erosion if cost increases are not passed to customers.
Strategic Advantage for Domestic Suppliers
On the flip side, domestically made trucks or parts may gain a pricing advantage, or used-equipment markets may soften as new trucks become costlier.
Tax & Accounting Considerations for Fresno Fleet Operations
- Deferred Purchase Strategy: Evaluate timing of equipment investment. While the tariffs are now in effect, businesses that completed purchases prior to Nov. 1 may have avoided additional costs. Going forward, evaluate whether accelerating other equipment investments or exploring domestic alternatives makes sense.
- Depreciation & Section 179: Equipment acquired this year may still qualify for accelerated depreciation; be sure to track costs and timing of your purchases carefully.
- Cost-Per-Mile Tracking: Rising capital costs must be reflected in cost-per-mile or cost-per-load measures to maintain profit margins.
- Inventorying Parts Costs: Firms with large parts inventories or repair operations should assess duty exposure and potentially secure supply chain contracts.
What to Do Now
- With tariffs now in effect, review upcoming fleet replacement plans, consider domestic or alternative sourcing, and adjust budgets to account for higher equipment or maintenance costs.
- Audit current parts-inventory sourcing and assess tariff exposure.
- Adjust budgets to reflect possible higher equipment or maintenance costs.
- Meet with your CPA, like DDC, to model tax implications and depreciation planning under the new tariff environment.
Why This Matters
For fleet, logistics, agriculture, or service businesses in the Central Valley, equipment and transport cost control are foundational to profitability. When tariffs increase acquisition and maintenance costs, the margin risks rise. By treating accounting and tax strategy as proactive tools, you can mitigate cost shocks rather than simply respond.
At DDC, we help businesses navigate changing cost structures, equipment strategies, and tax shields so they can remain competitive and financially resilient.
Want to explore how these tariff changes impact your fleet, operations, or business model? Contact DDC today to plan with confidence.