Trump Tarifs Will Hit Over $ 200 Billion in Us-Canada-Mexico Cross-Border Rail Trade

As President Donald Trump Readies the next phase of the US trade war, with tarifs on mexico and canada Set for Next Tuesday, Additional tarifs on chinaand Eu tarifs Coming as well, us freight railways are bracing for an impact that hits at the heart of a vast traffic network connecting World Economies.

In 2024, us Railroads Handled An Estimated $ 203.1 Billion in Cross-Border Trade with Canada and Mexico, According to a New Report from the Association of American Railrows.

The split between the nations is close to even, according to bureau of transportation statistics data: $ 104.8 billion in us-canada trade (66% imports, 34% experts) and $ 98.3 Billion in us-98.98.3 billion in us Trade (65% Exports, 35% Imports).

The Rail Trade Group Warned That Its Investment In Transportation Infrastructure Requires a Growing Economy.

“When the economy is doing well, we do do do do not and we’re all about making investments to compel economic growth,” said ian jefers, CEO of aar. “Trade is a key part of that, whether it’s expenses going out to our north American partners or importants coming in from our ports.”

In 2023, Us Rail Transportation Generated $ 233.4 billion in Total Economic output with more than $ 50 billion in direct value-edged to gdp, according to the aar. (2024 Data on GDP IMPACT will not be available until q4 of this year.)

The sector supported 749,400 jobs in 2023, generating $ 66.1 billion in household income.

The five states that have the Highest Freight Rail Employment Are Texas, Illinois, Nebraska, California, and Georgia. Texas tops the employment list giving

Aar Says the Railraads Invested Roughly $ 26.8 Billion Back ITO Itwork Last Year, “And that’s almost Entrely Entrely Private Private Private Capital Going Back In Infrastructure to Facilitate Intertate Intertate Intertate International Movement,” Jefferies said.

Projects Include CPKC‘Berkshire hathaway‘s bnsf railway barsstow international gateway, and the Union Pacific, CN And Grupo Mexico Transportes Intermodal Service Falcon PremiumOperating Between Canada, The US and Mexico,

Infrastructure Projects Have Generated Thousands of Jobs and Billions in Investment, According to the aar. Union Pacific is also investment in new intermodal ramps in phoenix, kansas city and salt lake city. In Maryland, CSX And Public Partners are reconstructing

“You’re Seeing Investments and Service Products Being Browing Online To Match What is an International Market to make sure that america mains its is global competition and the Push Goods Both Directions, “Jefferies said.

Based on Trade Data, The US-Canada Rail Corridor is a Major Conduit for Automotive Components, Petroleum Products, Forest Products, and Chemicals, Reflecting The Deeep Industrial Integration Between the TWO Economies. Trade at the US and Mexico Border, According to the aar Report, Includes Significant Volumes of Automotive Products, Agricultural Goods, and Industrial Materials.

The Cross-Border Trade is Moved Along Each Location, Jeferies Says, Provides an Economic Injection ITO The Local Economies.

“Industrial Development is a Key Economic Driver,” Jeferies Said.

Norfolk southern Alone in 2024 SAW $ 4.3 billion in Industrial Development Investments on its Network of 149 Projects.

The largest share of trade, up to 70%, moved by freight railway involves non-north American countries. The range of commodities and freight is vast. The Chemicals (17% Imported and Exported) Include Ethanol, Plastic, and Industrial Chemicals Essential for Global Manufacturing. Nearly 40% of US Grain Exports Move By Rail to Us Ports or Land Borders. Also Moved by Rail, Metals Including Iron Ore and Scrap Metal as Well as Minerals (15%).

Serving the canada-as border, Illinois is home to the single business Rail hub in the world in chicago: Six class I Railraads, 40 short-line railways, and an extended network of intermediate terror and Classification yards that move bot national and international commerce. In 2023, Rail activity in illinois contributed $ 4.7 billion in household income and supported 38,600 additional Jobs Across Various Industries.

On the west coast, California links the us to the global markets via its west coast ports. Close to 7,000 Freight Rail Employees Work in the State, Assisting in the Movement of Intermediate Containers, Consumer Goods, Food Products, and Chemicals.

“We’re all aware of the supply chain challenges the global supply chain felt back a few years back,” Jefferies said. “We’re Seeing Volmes on that Same Level, but maintaining a very high level of service. Businesses up for success in the future by making the investments now to support that expected Increased demand in the future. “