US railroads are closely monitoring plans by President Donald Trump to impose 25pc tariffs on imports from Canada and Mexico and 10pc on imports from China on 1 February, an action that could impact freight volume.
The White House today said Trump will proceed with the tariffs and pushed back on reports that they would be delayed.
Several Class I railroads declined to say if they were making any operational adjustments ahead of the tariffs. But several said they were closely monitoring the situation.
"As an interconnected network serving the US, Canada, and Mexico, railroads will be closely monitoring how these policies impact the customers we serve," the Association of American Railroads (AAR) said. The group's members include carriers in the US, Canada and Mexico. "Freight railroads have long supported policies that strengthen the US economy, enhance supply chain resilience, and help keep American industries competitive in a global marketplace."
International trade represents roughly 37pc of total US rail traffic, AAR said.
Canadian National, which operates in Canada and the US, said it is watching the situation closely.
"We've considered a range of options and have a plan for various scenarios," Canadian National said. "The key for us will be to be nimble and adjust quickly as the situation unfolds."
