Handicapping the Regulatory Climate
Within days of his election victory, President Donald Trump began issuing various pronouncements that will affect businesses in one way or another. We at ICSA see both positive and negative effects of announced policies.
Generally speaking, new tariffs would affect truckers whose businesses are directly or indirectly tied to foreign trade – a fairly large industry segment. It is too soon to predict where and on which goods new tariffs will apply, except those already announced for Mexico and Canada. The economies of Mexico, Canada and the United States are interdependent on each other and a tariff that penalizes goods from one country will inevitably bring offsetting penalties on the U.S. A Harvard Review study showed that the tariffs enacted during the prior Trump Administration led to higher prices and shortage of some goods.
Trump’s suspension of various highway and infrastructure projects poses a secondary but critical impact on trucking because these projects, in many cases, will directly benefit truckers. These projects include expanded truck parking, new bridges, road repair and adding lane miles in virtually every state to address congestion. Most of the funds for highway-related projects have already been given or promised to states whose construction plans are already set in concrete, no pun intended.
EV Mandate – Trump’s announced suspension of the Environmental Protection Agency’s electric vehicle mandate led to California withdrawing its waiver request to implement the state’s Accelerated Clean Fleets rule for truckers operating within the state whether domiciled there or not. Read more in the article “California Drops Some Trucking Rules” in this issue of the Landing Gear.
Regulatory Suspension – Rulemakings by federal agencies, including the U.S. DOT, FMCSA and the Department of Labor (DOL), are temporarily suspended under President Trump’s 60-day moratorium on new rules. Many of these pending regulations impact the trucking industry both in positive and negative ways. ICSA would like to see FMCSA’s new carrier registration system move ahead to prevent identity theft and other forms of fraud by parties using truckers’ information. In like manner, enacting broker transparency is a tool that can help reduce broker fraud such as double-brokering loads.
Other pending DOT rules are for Automatic Electronic Braking (AEB), Speed Limiters and Side Impact Devices for trailers. The Trump Administration has not signaled its position on these proposed rules but they are suspended for at least 60 days.
Independent Contractors – Another issue with major impact on trucking is the 2024 independent contractor classification rule implemented by Biden’s Department of Labor (DOL). The Biden rule rolled back a contractor classification rule from the first Trump administration that had outlined a reasonable test to determine if a worker is independent or an employee. The Biden test included six factors to be equally considered when determining whether a worker is an independent contractor or an employee. The Trump rule contained five factors but put greater emphasis on two “core factors” - the nature and degree of the worker’s control over the work and the worker’s opportunity for profit or loss.
Multiple plaintiffs have filed lawsuits against the current DOL IC rule; however, to date, none have been successful in getting an injunction or temporary restraining order (TRO) against the Biden rule. Legal experts are hopeful President Trump will reinstate the rule enacted during his first term. The outcome of the IC classification issue directly affects many ICSA members. It is one we follow closely and on which we will keep you informed.
Three North Texas trucking company owners recently united to combat human trafficking. Through their initiative, named the "Gift of Freedom," these leaders raised awareness of this issue and provided support to organizations working tirelessly to end this modern-day slavery. This effort highlights the critical role that the trucking industry can play in disrupting trafficking networks and protecting vulnerable individuals.
the California Air Resources Board (CARB) withdrew its waiver requests to the U.S. Environmental Protection Agency (EPA) for the state’s Advanced Clean Fleets (ACF) rule and Transport Refrigeration Units.
The Truck Leasing Task Force convened under the Federal Motor Carrier Safety Administration recently released a 51-page final report calling for a federal ban on truck lease-purchase agreements made with a motor carrier or its affiliates.