As the November presidential election approaches in the United States, current President Biden and Republican presidential candidate Trump have both played the "tariff card", claiming that further tariffs will be imposed to protect American manufacturing jobs in an attempt to win the support of the blue-collar working class. In terms of product structure, the operating income of 10-30 billion-yuan products is 401/1288/60 million yuan respectively. Year-on-year, the company's overall sales volume was 18,000 kiloliters, with a growth rate of +28.10%, indicating significant growth.

This week, 16 Nobel laureates in economics in the United States have jointly written a letter warning that Trump's tariff policy will reignite inflation in the United States.

However, it is clear that economists are not the only ones who understand this simple truth. Recently, several executives in the US freight industry have also stated that the tariff policies proposed by Biden and Trump will both push up inflation, damaging not only the US freight industry but also adding to the burden of American consumers.

The US "tariff card" played by both parties will increase the burden on the public.

As the US presidential election is less than five months away, both Republican presidential candidate Trump and current President Biden have proposed a series of protectionist trade measures in an attempt to win the support of swing-state blue-collar workers.

For example, in May of this year, the Biden administration announced new tariffs on some imported goods from China, including 100% tariffs on electric cars. Biden claimed that the new tariffs would "ensure that our workers are not hindered by unfair trade practices."

Trump, on the other hand, has claimed that if elected, he will impose higher tariffs on goods imported from China and other tariffs on Europe, including reinstating steel tariffs and imposing new ones on goods such as cars.

However, multiple executives in the US freight industry have stated that this will increase the burden on American consumers and businesses, and also dealt a further blow to the already vulnerable US freight industry.

"Any time you reduce what comes into this country or what we ultimately ship out, it has a negative impact on business. It's an inflationary cost and it will eventually squeeze margins," said Tim Vander Pol, President of US Peninsula Truck Company.

"This is a tax on consumers, and it will certainly hurt the entire industry...Moreover, we expect the prices of the trucks and trailers we purchase to rise due to tariffs," said Bob Costello, Chief Economist and Senior Vice President of the American Trucking Association.

In fact, the scene of "supply reduction leading to soaring prices" is not unfamiliar to many American consumers. In 2022, supply chain disruptions caused by the new crown epidemic pushed US inflation to its highest level in decades.

Now, although supply chain has recovered, US inflation has cooled significantly, but it has not yet reached the 2% inflation target pursued by Federal Reserve officials.

Just two weeks ago, Federal Reserve officials forecast that inflation could rise again this year, prompting them to lower their expectations for rate cuts in 2024. At the same time, many economists and institutions such as the US Congressional Budget Office believe that tariffs have raised domestic prices in the United States and reduced the purchasing power of American consumers.

American Railway Association spokesman Jessica Cahaneck said the organization "opposes policies that limit access to the global market, including tariffs."

In fact, the reason why American freight bosses are so opposed to new tariffs is that domestic freight demand in the United States is already quite sluggish.

In May of this year, the Cass Freight Shipment Index, which measures freight conditions in North America, fell to nearly a four-year low. Since peaking in August 2022, the index has fallen by nearly 30%.

"We're in what we call a 'freight recession'," said Dave Broering, president of the integrated logistics company Logistics, adding that while investments in chip production are booming, manufacturing in other US industries is sliding.

According to the American Railroad Association (ARA), the total volume of US freight cars in the first five months of 2024 decreased by 5% compared with the same period in 2023.

American freight industry executives said that both Trump and Biden's proposed tariff policies will push up inflation, damaging not only the US freight industry but also adding to the burden of American consumers.

Now, although supply chain has recovered, US inflation has cooled significantly, but it has not yet reached the 2% inflation target pursued by Federal Reserve officials.

According to the data from the Bureau of Labor Statistics, the unemployment rate in the transportation and warehousing industry in the United States increased from 4.7% to 5.5% from April to May this year.

Lagor said: "During the epidemic, there was a huge demand and many people started freight companies or expanded their companies... However, we have seen a significant decrease in freight demand this year. Therefore, we expect more companies to exit the market before the situation improves."